Q3 (5 points) Suppose a contingent valuation survey was administered on a sample of 600 Lethbridge residents to estimate their willingness-to-pay (WTP) to cleanup groundwater contamination from leaky underground fuel storage tanks at gas stations. A referendum method was used for the WTP question. Referendum question: Respondents were asked, "Would you vote to require gas stations begin tank overhaul immediately if it were on the ballot right now?" Yes No WTP question: If 'Yes', "Would you be willing to pay $ per month for the next 12 months to share the cleanup cost?" (A randomly chosen amount from $3.50 to $10.0 was used i the blank for each respondent). Their responses were summarized in this table. Proposed clean-up cost ($/month) 10.00 8.00 6.00 4.50 4.00 3.50 # of people voted "Yes" (willing to pay) 80 100 120 100 110 90 per month for the next 12 months to WTP question: If 'Yes', "Would you be willing to pay $ share the cleanup cost?" (A randomly chosen amount from $3.50 to $10.0 was used in the blank for each respondent). Their responses were summarized in this table. Proposed clean-up cost ($/month) 10.00 8.00 6.00 4.50 4.00 3.50 # of people voted "Yes" (willing to pay) 80 100 120 100 110 90 If the actual cleanup cost was $4.50 per person, what would be an estimate of the benefit (gain in consumer surplus) of this cleanup initiative to the sampled residents? (5 points) + Drag and drop an image or PDF file or click to browse...