The hedonic price method is a way of setting a value on a social good based on
A)how much people say they value that good when surveyed.
B)how much an ideally rational individual would pay for that good.
C)the popularity of a political party that advocates that good.
D)how much it would cost the government to provide a substitute for that good.
E)how much people are prepared to pay to acquire that good.

Question

Quizplus · Accepted Answer

The hedonic price method values a social good based on the prices people are willing to pay for it, reflecting its utility or desirability to them. This method often involves analyzing market transactions to infer the value of specific attributes or characteristics of goods.

The Hedonic Price Method Is a Way of Setting a Value