Paul Owns a Home on the Top of a Hill

Multiple Choice

Paul owns a home on the top of a hill and enjoys an unobstructed view of a large wooded area.The view was a large factor in his decision to buy the house and Paul values his view at $5,000 per month.Sid purchases the undeveloped wooded area with plans to build a retail shopping centre.Sid expects to earn $10,000 a month from the shopping centre,which is $3,000 more than his next best alternative.
-Refer to the information above.Assuming development of the land reduces the value of Paul's view to zero,then

A) Paul's consumer surplus will not change.
B) Paul will be worse off.
C) Sid will offer to compensate Paul for his loss.
D) Paul will be better off.
E) Paul's consumer surplus will rise.