The most you would be willing to pay for having a freshly washed car before goin
ID: 1256168 • Letter: T
Question
- The most you would be willing to pay for having a freshly washed car before going out on a date is $7. The smallest amount for which you would be willing to wash someone else’s car is $4. You are going out this evening and your car is dirty. How much economic surplus would you receive from washing it?
- The most you would be willing to pay for having a freshly washed car before going out on a date is $7. The smallest amount for which you would be willing to wash someone else’s car is $4. You are going out this evening and your car is dirty. How much economic surplus would you receive from washing it?
Explanation / Answer
Ans. If someone wash my car i have to $7, and it i wash sombody's car i will earn $4.
if i wash my own car it will result in no cost, it will be nil, therefore the economic surplus will be $7.