Question

Please answer 1-8

on the $20 she ce th he $10 ck than bef ade think of their aie travel a freguenr-flyer likely to make waster et you versit 4. Toms is a double i and sold of $200 Dick h making ndable ruition payme r university ehis semester would your answer difer if you refund to any stu si offer of school during the fist S. Suppn questi of the semester? iLo ely to Kus om same your a move be more bk PROBIENS 6. Marı she l a tic nlywould b sou receive from sell them at a s S6. The smallest amount for whichwsh $3.50. You are going out this wou would be willing to pay to have a fresh before going out on a date 6. willing to wash someone else's car is3 1. Suppose the most you uld you receive ECONOMICs W is dirty. How much economic surplus would youvenine 2 To earn extra money in the summer, you grow tomatoes and local farmers' market for 30 cents per pound. By adding comp go 7. Re tic he th washing it? /Lo2) den, you can increase your yield as shown in the table our compost costs S0 cents per pound and your goal is to make as mPae posible, how many pounds of compost should you add? (LO2)pro 3*You and your friend Joe have identical tastes. At 2 p.m., you go to a basketball game to be pla the locil Tick etmaster outlet and buy a $30 ticket yed Denotes more difficult problem.

Answer 1

Question 1

Maximum willingness to pay for a washed car = $6

Minimum willingness to receive for washing a car = $3.50

Economic surplus implies the difference between the value of units that are utilized for consumption and the value of such units produced.

So,

Economic surplus = Maximum willingness to pay for a washed car - Maximum willingness to pay for a washed car

Economic surplus = $6 - $3.50 = $2.50

Thus,

The person would receive an economic surplus of $2.50 from washing the car.