1: The individual demand function of the consumer is MWTP = 12-1/2Q where Q is the quantity of a private good. How many units of the good does the consumer buy if the price is 6? Please show the result and the way you derived it.

2: What is the total willingness to pay for the number of units that correspond to a price of 6 (the number of units from question 3)? Show the results and the way you derived it.

3: For two consumers with MWTP = 12-1/2Q for a public good Q, what is the aggregate marginal willingness to pay at Q=0? Please show the result and the way you derived it.

Answer rating: 100% (QA)

1 MWTP 12 05Q If P 6 6 12 05Q Q 12 2 P 12 0... View the full answer