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Roxie gets $30 worth of happiness from each pair of sunglasses she buys and $8 worth of happiness from each cup of ramen noodles she
Roxie gets $30 worth of happiness from each pair of sunglasses she buys and $8 worth of happiness from each cup of ramen noodles she buys. Roxie goes to the store to buy one pair of sunglasses and five cups of ramen noodles, and she buys them at $20 per pair of sunglasses and $1 per cup of noodles. In this scenario, what is the effect on the GDP of this transaction, and how much does it underestimate actual economic surplus? GDP effect = $25, overestimated by $45 GDP effect = $21, overestimated by $17 GDP effect = $21, underestimated by $17 GDP effect = $25, underestimated by $45
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