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    Principles of Economics Study Set 8
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    Exam 8: Applications: The Costs of Taxation
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    Scenario 8-1 Erin Would Be Willing to Pay as Much as $100
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Scenario 8-1 Erin Would Be Willing to Pay as Much as $100

Question 150

Question 150

Multiple Choice

Scenario 8-1
Erin would be willing to pay as much as $100 per week to have her house cleaned. Ernesto's opportunity cost of cleaning Erin's house is $70 per week.
-Refer to Scenario 8-1. If Erin pays Ernesto $90 to clean her house, Erin's consumer surplus is


A) $80.
B) $30.
C) $20.
D) $10.

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