The most you would be willing to pay for having a freshly washed car before goin

Question

1. 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?

1. 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.

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