Residents of Vancouver often complain when the temperature drops below zero while residents of Winnipeg frequently endure temperatures of - 40. How can economics explain this?
A)houses in Winnipeg are colder because the marginal cost of heating is lower
B)residents of Winnipeg are heartier than Vancouverites
C)the moist air in Vancouver increases heating costs
D)houses in Vancouver are colder because the marginal cost of heating is higher

Question

Quizplus · Accepted Answer

Houses in Vancouver may be colder than those in Winnipeg because the marginal cost of heating is higher. Vancouver has a moderate climate, with temperatures rarely dropping below freezing, so many houses may not be well-insulated or equipped with heating systems that can handle extreme cold temperatures. In contrast, Winnipeg residents are used to very cold temperatures and have invested in better insulation and heating systems.

Residents of Vancouver Often Complain When the Temperature Drops Below