Think of any public good, such as public parks or homeland security. In the context of the public...

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Think of any public good, such as public parks or homeland security. In the context of the public good, post a response to the following. How do you think the principles of price elasticity of demand might be applied to the pricing of public goods? Explain your reasoning and assumptions, as well as how it might affect efficiency.  What economic principles might the provider of public goods—the government, in most cases—use to price these goods? Use examples to explain your reasoning.

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Think of any public good, such as public parks or homeland security. In the context of the public good, post a response to the following. How do you think the principles of price elasticity of demand might be applied to the pricing of public goods? Explain your reasoning and assumptions, as well as how it might affect efficiency. What economic principles might the provider of public goods—the government, in most cases—use to price these goods? Use examples to explain your reasoning. 2 Pages total
When we want to use economic principles to price any good we use the ‘willingness’ of a consumer to pay for the good as the guide. This willingness is the foundation of the demand schedule for this good.  All the analysis is based on this curve-whether it is utility maximisation of the consumer or profit maximisation of the firm.
For a private good we can aggregate all demand curves horizontally to arrive at the total/market demand for a good. This demand is then equated to total supply to arrive at the optimal price and quantity level.  Elasticity of demand is captured in the slope of the demand curve; flatter is this curve higher is the elasticity of demand.

Think of any public good, such as public parks or homeland security. In the context of the public good, post a response to the following. How do you think the principles of price elasticity of demand...

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