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Willingness to pay
Date Posted: 24/07/2021
Category: Economics
Due Date: 24/07/2021
Instruction
Your family has outgrown the house you now live in. You paid $350,000 for the house you are now in and you have a budget of $450,000 for a larger house. You shop around in several towns and you find one being sold by a builder for $460,000. That builder bought the house for $300,000 and spent $75,000 remodeling it. You and the builder settle on a price of $410,000. Please find and evaluate the: Willingness to pay, Consumer surplus, Demand, Producer surplus, Cost and, Willingness to sell of your own example. Present the above in narrative form including the economics terms in the body of your writing, not as definitions. These terms constitute what has been referred to as the “language of economics”. Be sure to include a brief introduction and footnotes to your research.
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