Geoff is willing to pay $13 for a sixth entrance to a mountain bike park.The market price for entrance is $10.50.The bike park is willing to accept $8.75.The total economic surplus generated from Geoff's sixth trip to the bike park is
A)$1.75.
B)$2.50.
C)$13.00.
D)$10.50.
E)$4.25.

Question

Quizplus · Accepted Answer

The economic surplus is the difference between what Geoff is willing to pay ($13) and what the park is willing to accept ($8.75), which is $4.25.

Geoff Is Willing to Pay $13 for a Sixth Entrance