Question

Tom walks Bethany’s dog once a day for $50 per week. Bethany values this service at $60 per week, while the opportunity cost of Tom’s time is $30 per week. The government places a tax of $35 per week on dog walkers. Before the tax, what is the total surplus?

Answer 1

Hello, Tnaaasty4001. Thanks for writing in.

You're asking before the tax, what is the total surplus.

You have have a total surplus of $30.

When you have a surplus, it means the leftover money that us let over all the requirements that have been met or payed. In this case, his surplus is $30. This can also mean that an amount of money is needed or demanded.