Question

Suppose the most you would be willing to pay to have a freshly washed car before going out on a date is $6.00. 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

$2.50

Step-by-step explanation:

Economic surplus is the sum of consumer and producer surplus.

Consumer surplus is the difference between the willingness to pay of a consumer and the price he pays for a good or service.

Producer surplus is the difference between the price of a good or service and the least amount a producer is willing to accept.

Economic surplus = $6 - $3.50 = $2.50

I hope my answer helps you.