Homework Help is Here – Start Your Trial Now!
Business
Economics
You want to buy a new book. The benefit you get from the book, expressed in dollars, is $100 The price is $9. If you don't buy the book, you buy a new computer game that also costs $9. The benefit you get from the game, expressed in dollars, is $45. What is your willingness to pay for the book? Enter a number only, drop the $ sign. 100 64

You want to buy a new book. The benefit you get from the book, expressed in dollars, is $100 The price is $9. If you don't buy the book, you buy a new computer game that also costs $9. The benefit you get from the game, expressed in dollars, is $45. What is your willingness to pay for the book? Enter a number only, drop the $ sign. 100 64

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 1SCQ: Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can...
See similar textbooks
icon
Related questions
Question

Stuck on question for hours. Question in Image attachment. Thanks for your help :) 

You want to buy a new book. The benefit you get from the book, expressed in dollars, is $100 The price is $9. If you don't buy the book, you buy a new computer game that also costs $9. The benefit you get from the game, expressed in dollars, is $45. What is your willingness to pay for the book? Enter a number only, drop the $ sign. 100 64 Economists use the general rule that people should buy the good as long as Benefits > Opportunity Costs. But when you buy a book, typically you compare Willingness to Pay (WTP) to price. We can move things around to convert the Benefits > Opportunity Costs into a WTP > Price comparison. For example in this case you would buy the book if Value from the book > Value from the next best alternative. To get the price, add and subtract the price on the right hand side of the equation and then keep the price on the right hand side and mover everything else over to the left hand side and rename it WTP. See the problem set, tutorials and videos for more details.
Transcribed Image Text:You want to buy a new book. The benefit you get from the book, expressed in dollars, is $100 The price is $9. If you don't buy the book, you buy a new computer game that also costs $9. The benefit you get from the game, expressed in dollars, is $45. What is your willingness to pay for the book? Enter a number only, drop the $ sign. 100 64 Economists use the general rule that people should buy the good as long as Benefits > Opportunity Costs. But when you buy a book, typically you compare Willingness to Pay (WTP) to price. We can move things around to convert the Benefits > Opportunity Costs into a WTP > Price comparison. For example in this case you would buy the book if Value from the book > Value from the next best alternative. To get the price, add and subtract the price on the right hand side of the equation and then keep the price on the right hand side and mover everything else over to the left hand side and rename it WTP. See the problem set, tutorials and videos for more details.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Asymmetric Information
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS