Supply and Demand in a Nonprofit World

Abstract

This paper examines both the supply of and demand for a good produced by firms in a nonprofit setting. The objective is to see if the standard positive slope for supply and negative slope for demand need hold. In a set-ting where quality becomes a choice variable, it is possible to have a negatively sloped supply. Similarly for demand, when quality is part of the choice, it is possible that demand is positively sloped. I do not expect both conditions to hold in the same market.  (I29, L21, L30)