Question

what is the construction of a market demand curve for a private good differ from that for a public good and what are the differences of between the demand for a private good and that for a public good is that?

Answer 1

The market demand for public good is determined by adding up the prices each consumer is willing to pay for each quantity of the good. Bit the market demand for a private good is determined by adding up the quantities demanded by each price.

A private good is defined in economics as an item that gives people positive benefits. It can avoided,i.e its owners can exercise private property right, those who have not paid for it from using the good or consuming its benefits. A private good as an economic resource is scarce that will lead to competition. The market demand curve for a private good is horizontal, summation of individual demand curves.

Unlike public goods, such as national defense or fresh air less likely to have the free rider problem in which a person benefits from a public good without contributing towards it. The economy's marginal benefit curve (demand Curve) for a public good is thus the vertical sum all individual's marginal benefit curve .