Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 30

We can consider the market for traveling to Mars to be missing, because no technology exists that allows this service to be bought and sold. Suppose that someone has invented space-travel technology that will enable this service to be provided. Figure 5P-10 shows the estimated market for trips to Mars. Calculate the surplus that could be generated by filling in this missing market.