Suppose Two Neighborhoods (A and B)have Identical Housing, but Neighborhood

Multiple Choice

Suppose two neighborhoods (A and B) have identical housing, but neighborhood A has a strictly enforced deed restriction that prohibits homeowners from parking junk cars in the front yard. If houses in neighborhood A sell for $105,000 and houses in neighborhood B sell for $100,000, how would an economist value the external cost of visible junk cars, per house?

A) $205,000
B) $105,000
C) $100,000
D) $5,000