(Answered) Assume there are only 3 people in the economy they are

Management Studies

Assume there are only 3 people in the economy. They are Abbot, Costello, and Harvey. Their demand for a public good is as follows:

Abbot: QD = 10 - 0.5P

Costello: QD = 15 - P

Harvey: QD = 20 - 4P

Assume that the supply for the public good is QS = 0.5P.

What is the optimal amount of the public good for this economy and what is the price of the public good?

45, $5.50
15, $1.83
7.62, $15.24
3.75, $7.50
40, $3.25

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