Why are the individual willingness-to-pay curves added vertically, not horizontally, to get the aggregate willingness- to- pay

Question:

Why are the individual willingness-to-pay curves added vertically, not horizontally, to get the aggregate willingness- to- pay curve for a public good?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics and Behavior

ISBN: 978-0078021695

9th edition

Authors: Robert Frank

See More Books

Question Posted: Dec 12, 2014 10:25 AM

See More Questions

Why is the aggregate demand curve downsloping? Specify how your explanation differs from the explanation for the downsloping demand curve for a single product. What role does the multiplier play in...
Why are mathematical models not more widely used in aggregate planning?
Why does the aggregate demand curve slope downward?
Review TP1. Review current season ticket prices for one Major League Baseball team. Choose one season ticket price area to review. A. Determine what is recognized as per ticket revenue after each...
Consider the following LP model: Maximize z = 5x1 + 2x2 + 3x3 Subject to X1 + 5x2 + 2x3 b1 X1 - 5x2 - 6x3 b2 X1, x2, x3 0 The following optimal tableau corresponds to specific values of b1 and b2:...
China PBOC Lowers Banks Reserve Requirements to Encourage Lending The Peoples Bank of China will cut the required reserve ratio by 0.5 percent to 8.9 percent. Explain how the money multiplier will...
2-9. Qu son los puntos de diferencia y en qu radica su importancia?
Greengage, Inc., a successful nursery, is considering several expansion projects. All of the alternatives promise to produce an acceptable return. Data on four possible projects follow. a. Which...
Using the first chart and the rest of the data in the second picture can you find the missing values at the bottom of the chart incase the numbers were to blury i made a mistake these are the values...
a. What is capital budgeting? b. What is the difference between independent and mutually exclusive projects? c. 1. Define the term net present value (NPV). What is each franchise's NPV? 2. What is...
Consider a simple economy with two goods, food and clothing, and two consumers, A and B. For a given initial endowment, when the ratio of food to clothing prices in an economy is 3/1, A wants to buy...
How are jointly produced private goods analogous to public goods?
Explain the objective of agreed-upon procedures engagement and provide five examples of such procedures.
I have attached a case study, primarily based on your textbook chapter reading assignments. The background material for the case also references chapters 3 and 15, not assigned for this course....
On December 1 , 2 0 2 5 , Sandhill Distributing Company had the following account balances.DebitCash$ 7 , 1 0 0 Accounts Receivable 4 , 5 0 0 Inventory 1 1 , 9 0 0 Supplies 1 , 2 0 0 Equipment 2 2 ,...
Cindy Greene works at Georgia Mountain Hospital. The hospital experiences a lot of business closer to summer when the temperature is warmer. Cindy is meeting with her supervisor to go over the budget...
Use z scores to compare the given values. Based on sample data, newborn males have weights with a mean of 3247.4 g and a standard deviation of 575.4 g. Newborn females have weights with a mean of...
Gignment FULL SCAL Exercise 4- The following ndependent situations require professional judgment for determining when to recognize revenue from the transactions. Identify when revenue should be...
Discuss the difference between weight versus admissibility with respect to Daubert challenges.
Suppose that you could invest in the following projects but have only $30,000 to invest. How would you make your decision and which projects would you invest in? Project Cost $ 8,000 11,000 9,000...
P(E|A) Find the indicated probabilities by referring to the given tree diagram and by using Bayess Rule. A P(A) = 0.2 P(E|A)=0.6 E P(ECA) = 0.4 -EC P(B) = 0.55 P(E|B)=0.7 -E B EC P(E|B) = 0.3 P(C) =...
Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs: Quantity of houses painted per month: 1 2 3 4 5 6 7 8 Variable costs: $10, $20, $40,...
If a portfolio had a return of 8%, the risk free asset return was 3%, and the standard deviation of the portfolio's excess returns was 20%, calculate the Sharpe measure.
If the nominal GDP is $559 billion in the base year, and it rises to 577 in Year 1, and 605 in Year 2, what is the real GDP in each year, given that the price index has risen from 100 to 104.5 in the...
Domino is 4 0 years old and is married out of community of property with the exclusion of the accrual system to Dolly ( 3 5 ) . They have one child, Domonique, who is 1 1 years old. Domino resigned...
YOU ARE CREATING AN INVESTMENT POLICY STATEMENT FOR JANE DOE General: 60 years old, 3 grown children that are living on their own and supporting themselves. She is in a very low tax rate so we don't...
firm purchased a new piece of equipment with an estimated useful life of eight years. The cost of the equipment was $65,000. The salvage value was estimated to be $10,000 at the end of year 8. Using...

Why are the individual willingness-to-pay curves added vertically, not horizontally, to get the aggregate willingness- to- pay

Question:

Step by Step Answer:

The vertical axis expresses the amount that each individ...View the full answer

Microeconomics and Behavior

Students also viewed these Economics questions