In the following diagram, the long-run supply curve (SLR) for a pure public good is drawn along with Kate's demand (DK) and Rita's demand (DR). 1. A pure public good is non-rival in consumption and non-excludable. Draw the social marginal benefit (SMBG) curve for this pure public good. 2. The efficient provision level of the pure public good is Q' = 3. Suppose that individual tax prices were assessed for Rita and Kate that would cause them to want the efficient provision level of the pure public good. Rita's tax price would be PR = , while Kate's tax price would be pk = 4. Suppose that technological and social change caused the pure public good to become a rival and excludable good. Draw the social marginal benefit curve for this pure private good (SMBQ). 5. The perfectly competitive market equilibrium for this pure private good would have a price of PE = and a quantity of QE = P ($/unit) 20 15 DK 10 SLR -DR S 0 5 10 15 Q (units) 20 25 30