On the basis of the three individual demand schedules in the following table, and assuming these are the only three people in the society, determine a. the market demand schedule on the assumption that the good is a private good and b. the collective demand schedule on the assumption that the good is a public good. Instructions: Enter your answers as a whole number. Individual 1 Individual 2 Individual 3 (a) Private Demand (b) Public Demand Price Qd Price 00' Price Qd Price 00' Price Qd $8 1 7 2 6 3 5 4 4 5 3 6 2 7 'l 8 Problem 05-03 Look at the figures below, which show the costs and benefits to voters Garcia, Johnson, and Lee of two different public goods that the government will produce if a majority of voters support them. Suppose that Garcia, Johnson, and Lee have decided to have one single vote at which the funding for both of those public goods will be decided simultaneously. Total benefit = $1,150 Total benefit = $800 Benefit; Tax Total cost = $900 Benefit; Tax Total cost = $900 $700 Garcia $300 $300 per per- person person tax tax $350 $350 $300 $300 $250 $200 Johnson Lee Johnson Lee $100 Garcia (Votes) (Yes) (NO) (No) (NO) (Yes) (Yes) (a) (b) Inefficient majority "no" vote Inefficient majority "yes" vote Instructions: Enter your answers as a whole number. If you are entering any negative numbers, be sure to include a negative sign (-) in front of those numbers. a. Given the $300 cost per person of each public good, what are Garcia's net benefits for each public good individually and for the two combined? Net benefit of first public good = $[ Net benefit of second public good = $[For the two combined = $ |:| Will she vote yes or no on the proposal to fund both projects simultaneously? (Click to select) v . What are Lee's net benefits for each public good individually and for the two combined? Net benefit of first public good = $ |:| Net benefit of second public good = $ |:| For the two combined = $ |:| Will she vote yes or no on the proposal to fund both projects simultaneously? (Click to select) v . What are Johnson's net benefits for each public good individually and for the two combined? Net benefit of first public good = $ |:| Net benefit of second public good = $ |:| For the two combined = $ |:| Will he vote yes or no on the proposal to fund both projects simultaneouslyor will he be indifferent? (Click to select) v . Who is the median voter here? (Click to select) v Whom will the two other voters be attempting to persuade? (Click to select) v a. On the basis of the three individual demand schedules below, and assuming these three people are the only ones in the society, determine the collective demand schedule on the assumption that the good is a public good. Instructions: Enter your answers as a whole number. Individual 1 Individual 2 Individual 3 Demand for Public Good Price Qd' Price Qd Qd $16 1 $16 0 1 14 2 14 O 2 12 3 12 O 3 10 4 10 1 4 8 5 8 2 5 6 6 6 3 6 4 7 4 4 7 b. Use the public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good. Supply of Public Good Price $42 10 $36 8 $30 $24 $18 $12 $8 $ 4 Optimal quantity =