1. Suppose a market is comprised of two consumers: Mary and Mike. They have the following...

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1. Suppose a market is comprised of two consumers: Mary and Mike. They have the following demand functions: Mary: P = 200 0.2 Q Mike: P = 800 - 0.4 Q 1.1 If the market is dealing with a private good, what is the market demand function? 1.2 If the market is dealing with a "public" good, what is the market demand function? 1.3 If the government supply function is P = 400 + 0.4 Q, what are the equilibrium price and quantity? 1. Suppose a market is comprised of two consumers: Mary and Mike. They have the following demand functions: Mary: P = 200 0.2 Q Mike: P = 800 - 0.4 Q 1.1 If the market is dealing with a private good, what is the market demand function? 1.2 If the market is dealing with a "public" good, what is the market demand function? 1.3 If the government supply function is P = 400 + 0.4 Q, what are the equilibrium price and quantity?

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11 For a private good the market demand function is the sum of the individual demand functions The... View the full answer