Question
1. Suppose a market is comprised of two consumers: Mary and Mike. They have the following demand functions: Mary: P = 200 0.2 Q
1. Suppose a market is comprised of two consumers: Mary and Mike. They have the following demand functions: Mary: P = 200 0.2 Q Mike: P = 800 - 0.4 Q 1.1 If the market is dealing with a private good, what is the market demand function? 1.2 If the market is dealing with a "public" good, what is the market demand function? 1.3 If the government supply function is P = 400 + 0.4 Q, what are the equilibrium price and quantity?
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Principles of economics
Authors: N. Gregory Mankiw
6th Edition
978-0538453059, 9781435462120, 538453052, 1435462122, 978-0538453042
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