Glen is considering whether to paint his house and if so,what colour to choose.He settles on three options: leave it "as is",paint it brown,or paint it purple.Glen's neighbours are able to easily see his house.The following table shows the monetary values of utility for Glen and his neighbours under the three possibilities.
-Refer to the information above.The ranking of total economic surplus for Glen and his neighbours from highest to lowest is
A) purple,brown,no change.
B) brown,no change,purple.
C) neon purple,no change,brown.
D) no change,brown,purple.
E) brown,purple,no change.

Question

Glen is considering whether to paint his house and if so,what colour to choose.He settles on three options: leave it "as is",paint it brown,or paint it purple.Glen's neighbours are able to easily see his house.The following table shows the monetary values of utility for Glen and his neighbours under the three possibilities. 
-Refer to the information above.The ranking of total economic surplus for Glen and his neighbours from highest to lowest is
A) purple,brown,no change. 
B) brown,no change,purple. 
C) neon purple,no change,brown. 
D) no change,brown,purple. 
E) brown,purple,no change.

Quizplus · Accepted Answer

The total economic surplus is highest when Glen paints his house purple. This is because the total utility for both Glen and his neighbours is highest under this option. Painting the house brown is the next best option, followed by leaving it "as is". Therefore, the ranking from highest to lowest is purple, brown, and no change.

Glen Is Considering Whether to Paint His House and If