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Where are the demand prices ($/unit) or willingness to pay for the two consumers, respectively? Then, what is the market demand curve for this public good?

User Ksempac
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Final answer:

The demand prices or willingness to pay for the two consumers are $90 and $80 respectively. The market demand curve for this public good shows the total quantity demanded at different price levels.

Step-by-step explanation:

The demand prices or willingness to pay for the two consumers can be identified from the given information. Point J on the demand curve shows that at a price of $90, 20 million tablets would be sold. This implies that consumer 1 is willing to pay $90 for a tablet. On the other hand, since the equilibrium price is $80, consumer 2 is willing to pay $80 for a tablet.



The market demand curve for this public good can be obtained by summing the individual demand curves. Taking into account consumer 1 and consumer 2, the market demand curve would show the total quantity demanded at different price levels. For example, at a price of $90, the market demand would be 20 million tablets.

User Milena
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