Question

Suppose the most you would be willing to pay to have a freshly washed car before going out on a date is $6. The smallest amount for which you would be willing to wash someone else's car is $3.50. You are going out this evening and your car is dirty. How much economic surplus would you receive from washing it?

Answer 1

Answer:

$2.50

Explanation:

The most you would be willing to pay to have a freshly washed car before going out on a date is $6

The smallest amount you would be willing to wash another person's car is $3.50

Therefore if you are going out and need to wash the car, the economic surplus that would be received from washing it can be calculated as follows

= $6 - $3.50

= $2.50

Hence the economic surplus that would be received from washing the car is $2.50