Question
2. Consider the following WTP schedule. 50 subjects are asked about their WTP for a health care treatment as the price of that treatment varies.
2. Consider the following WTP schedule. 50 subjects are asked about their WTP for a health care treatment as the price of that treatment varies.
| Bid (Price) | Yes | No |
| 0 | 50 | 0 |
| 10 | 40 | 10 |
| 20 | 30 | 20 |
| 30 | 15 | 35 |
| 40 | 10 | 40 |
A. What is the median WTP?
B. What is the mean WTP?
C. How would you expect income to affect WTP? Explain.
D. Suppose that subjects are told that they will not actually have to pay for these treatments but that the funds will be taken from taxes levied on wealthier individuals. How might this affect WTP responses?
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Environmental Economics And Policy
Authors: Thomas H Tietenberg
5th Edition
0321348907, 9780321348906
