Question
11 Dale owns Dale Computers and Olivia owns Olivia Beauty Shop. Both Dale and Olivia want to employ the service of a security guard. Dale
Dale owns Dale Computers and Olivia owns Olivia Beauty Shop. Both Dale and Olivia want to employ the service of a security guard. Dale is willing to pay $15 per hour up to a maximum of 12 hours while Olivia is willing to pay $12 per hour up to a maximum of 12 hours. Using this information answer the questions below:
a)Supposing security service is a private good, construct individual demand curves for Jill and Dale and market demand curves for Olivia and Dale.
b)Supposing security service is a public good, construct individual demand curves for Olivia and Dale and construct market demand curves for Olivia and Dale.
c)Explain the following statement: "Market demand curve for a public good is determined by adding vertically".
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