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Welfare and Efficiency - End of Chapter Problem A study by University of Minnesota economist, Joel Waldfogel, estimated the difference in the actual monetary value of gifts received and how much the recipients would have been willing to pay to buy them on their own. The study suggested that the average recipient's valuation was approximately 90% of the actual purchase price. a. In 2019, it was estimated that the average amount spent on winter holiday gifts in Canada was $692. Based on the estimate from the Waldfogel study, how much of this would be deadweight loss? Enter your answer to the cent. b. In 2019, approximately 30 million people in Canada above the age of 18. Assuming that each individual purchased $692 worth of gifts, what was the total deadweight loss associated with gift giving in Canada? Round your answer to the nearest million dollars. million

Welfare and Efficiency - End of Chapter Problem A study by University of Minnesota economist, Joel Waldfogel, estimated the difference in the actual monetary value of gifts received and how much the recipients would have been willing to pay to buy them on their own. The study suggested that the average recipient's valuation was approximately 90% of the actual purchase price. a. In 2019, it was estimated that the average amount spent on winter holiday gifts in Canada was $692. Based on the estimate from the Waldfogel study, how much of this would be deadweight loss? Enter your answer to the cent. b. In 2019, approximately 30 million people in Canada above the age of 18. Assuming that each individual purchased $692 worth of gifts, what was the total deadweight loss associated with gift giving in Canada? Round your answer to the nearest million dollars. million

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Welfare and Efficiency - End of Chapter Problem A study by University of Minnesota economist, Joel Waldfogel, estimated the difference in the actual monetary value of gifts received and how much the recipients would have been willing to pay to buy them on their own. The study suggested that the average recipient's valuation was approximately 90% of the actual purchase price. a. In 2019, it was estimated that the average amount spent on winter holiday gifts in Canada was $692. Based on the estimate from the Waldfogel study, how much of this would be deadweight loss? Enter your answer to the cent. b. In 2019, approximately 30 million people in Canada above the age of 18. Assuming that each individual purchased $692 worth of gifts, what was the total deadweight loss associated with gift giving in Canada? Round your answer to the nearest million dollars. million
Transcribed Image Text:Welfare and Efficiency - End of Chapter Problem A study by University of Minnesota economist, Joel Waldfogel, estimated the difference in the actual monetary value of gifts received and how much the recipients would have been willing to pay to buy them on their own. The study suggested that the average recipient's valuation was approximately 90% of the actual purchase price. a. In 2019, it was estimated that the average amount spent on winter holiday gifts in Canada was $692. Based on the estimate from the Waldfogel study, how much of this would be deadweight loss? Enter your answer to the cent. b. In 2019, approximately 30 million people in Canada above the age of 18. Assuming that each individual purchased $692 worth of gifts, what was the total deadweight loss associated with gift giving in Canada? Round your answer to the nearest million dollars. million
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