Lecture Review on Public Goods and Market Demand

These flashcards cover key concepts related to demand curves, public goods, and market demand discussed in the lecture.

What are the two types of goods discussed in relation to consumer demand?

Private goods and public goods.

How do you calculate market demand for private goods?

By summing the quantities that individual consumers want at each price.

What is the demand curve equation for Brianna?

P = 8 - q (where q is the quantity).

How is the demand for public goods determined?

By summing the willingness to pay for each quantity, vertically.

What is the optimal amount of mosquito traps for Brianna and Carlos if they are both willing to pay for four traps?

The optimal amount is four traps, based on their total benefit.

What issue arises with consumers' willingness to pay for public goods?

Consumers do not have an incentive to reveal their true valuation.

What is the role of government in relation to public goods?

To prevent the free rider problem through its taxing power.

What is an example of a public good as discussed in the lecture?

Mosquito traps in a neighborhood.

How many slices of pizza does Brianna want at a price of $2?

Six slices.

At what price does the market demand curve for public goods reach maximum willingness to pay of 24?

At a quantity of zero.