Public health information can be broadcast at a cost of $100. Public health information is a pure public good, in that many people can use the information simultaneously and preventing people from using the information is difficult. One group of residents has a demand curve for public health information of the form Q = 50 − P. Here Q is the number of public health broadcasts per month and P is the price per broadcast. Another group has a demand curve of Q = 140 − P.

a. At a price of $100 per broadcast, how many broadcasts per month will be demanded? (Add the quantities demanded by each group.)

b. What is the total willingness to pay for 85 broadcasts? (Recast the demand curve to reveal willingness to pay and add the amounts for the two groups. For one group, willingness to pay equals 50 − Q. For the other, it equals 140 − Q. For both groups the minimum is $0.)

c. At what level of output does willingness to pay equal $100? 

d. What do these results imply?