Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below. The public's willingness to pay for the 4th acre of parkland is Price (S) 12 12 10 CO 8 2 6 Price ($) 12 12 10 8 2 Price (S) 12 10 2 8 6 0 2 4 6 8 10 Citizen X's Demand 0 2 4 6 8 10 Citizen Y's Demand 0 2 4 6 8 10 Citizen Z's Demand $14 $26 $8 520

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section: Chapter Questions
Problem 4PA
Question
Consider a town with three residents. The residents' demand curves for various acres of a
public park are shown below. The public's willingness to pay for the 4th acre of parkland is
Price (S)
12
12
10
CO
8
2
6
Price ($)
12
12
10
8
2
Price (S)
12
10
2
8
6
0 2 4 6 8 10
Citizen X's Demand
0 2 4 6 8 10
Citizen Y's Demand
0 2 4 6 8 10
Citizen Z's Demand
$14
$26
$8
520
Transcribed Image Text:Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below. The public's willingness to pay for the 4th acre of parkland is Price (S) 12 12 10 CO 8 2 6 Price ($) 12 12 10 8 2 Price (S) 12 10 2 8 6 0 2 4 6 8 10 Citizen X's Demand 0 2 4 6 8 10 Citizen Y's Demand 0 2 4 6 8 10 Citizen Z's Demand $14 $26 $8 520
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