A demand curve for a public good is determined by Select one: A. combining the amounts of the public good that the individual members of society demand at each price. B. summing vertically the individual demand curves for the public good. C. summing horizontally the individual demand curves for the public good. D. multiplying the per-unit cost of the public good by the quantity made available

A demand curve for a public good is determined by
Select one:
A. combining the amounts of the public good that the individual members of society demand at each price.
B. summing vertically the individual demand curves for the public good.
C. summing horizontally the individual demand curves for the public good.
D. multiplying the per-unit cost of the public good by the quantity made available.

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Answer

• B. summing vertically the individual demand curves for the public good.
  Explanation:
  Demand curve for a public good is the summation of individual demand curves showing the price the society is willing to pay for a certain amount of public good. As a result of the diminishing marginal utility law, the demand curve for a public good is usually downward sloping. Note that the price of a public good is the same for all individuals, but each person will value the goods at different prices.

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