Person 1 values a 7th unit at 1 and person 2 values a 7th unit at 3 so the total value of a 7th is 4. Vertically adding up the marginal values placed on each unit gives us the market demand for the public good, DP.
It is because of the non-rivalness of public goods that we add
up demand this way. The amount we should spend on supplying a public good is the sum of the values of all those who would enjoy the good.
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