Exhibit 25-1
$\begin{array}{|c|c|c|c|}
\hline & & \text { Web Site } & \
\hline \text { Student } & \mathbf{A} & \mathbf{B} & \mathbf{C} \
\hline 1 & \$ 120 & \$ 100 & \$ 80 \
\hline 2 & 60 & 140 & 100 \
\hline 3 & 40 & 160 & 50 \
\hline 4 & 80 & 40 & 180 \
\hline
\end{array}$
-A professor is trying to decide which tutorial Web site to post for an economics course. Exhibit 25-1 is a demand-revealing mechanism representing students' truthful answers about their preferences for three different sites. Which site has the highest total willingness to pay?

Question

Quizplus · Accepted Answer

To calculate the total willingness to pay for each site, you need to add up the amounts in each column. The total willingness to pay for Site A is $300, for Site B it is $440, and for Site C it is $410. Therefore, Site B has the highest total willingness to pay and should be the professor's choice.

Exhibit 25-1 -A Professor Is Trying to Decide Which Tutorial Web Site