5. Suppose that on a campus, girls' demand for an air freshener is P 10- Q, and boys' demand is P = 10 – Q. The supply for the air freshener is P= 5+ Q. (a) Suppose that the air freshener is a private good. Write down the combined demand of girls and boys for the air freshener. What would be the equilibrium quantity of air freshener traded? at what price? (b) Now suppose that the air freshener is a public good. Write down the combined demand of girls and boys for the air freshener. What would be the equilibrium quantity of air freshener traded? at what price?

5. Suppose that on a campus, girls' demand for an air freshener is P 10- Q, and boys' demand is P = 10 – Q. The supply for the air freshener is P= 5+ Q. (a) Suppose that the air freshener is a private good. Write down the combined demand of girls and boys for the air freshener. What would be the equilibrium quantity of air freshener traded? at what price? (b) Now suppose that the air freshener is a public good. Write down the combined demand of girls and boys for the air freshener. What would be the equilibrium quantity of air freshener traded? at what price?

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 8PA

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How is the increase in post-secondary education (e.g. positive externality) going to effect consumer behavior in the future?
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