The figure to the right illustrates the supply of fireworks and the demand for fireworks by David (D₁) and Lisa (D₂). Assume fireworks are a public good (and that David and Lisa constitute the entire market for fireworks). What is the optimal provision of this public good? The optimal quantity of this public good for David and Lisa is fireworks. (Enter a your response as a whole number.) D Price ($ per firework) 12 11- 10- 9- 8 D₁ 7- 3- 2- 1- 0- D₂ 1 3 5 6 7 Fireworks 8 9 10 11

The figure to the right illustrates the supply of fireworks and the demand for fireworks by David (D₁) and Lisa (D₂). Assume fireworks are a public good (and that David and Lisa constitute the entire market for fireworks). What is the optimal provision of this public good? The optimal quantity of this public good for David and Lisa is fireworks. (Enter a your response as a whole number.) D Price ($ per firework) 12 11- 10- 9- 8 D₁ 7- 3- 2- 1- 0- D₂ 1 3 5 6 7 Fireworks 8 9 10 11

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 3PA

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