1. Suppose you conduct a contingent valuation survey based on the question “If a program to avoid future oil spills in the Gulf of Mexico would cost X dollars, would you support it?”. You have 4 versions of the questionnaire with different values of the program’s cost X: 5, 10, 15, 20. You obtain the following percentages of individuals who answer “yes” to the question.

Survey	Cost of program (X)	Percentage Yes
A	5	80
B	10	65
C	15	30
D	20	20

Assuming that your survey sample is representative of 100 million households, calculate the total willingness to pay (in million dollars) for the program using the method presented in class.

Answer rating: 100% (QA)

To calculate the total willingness to pay for the program we need to multiply the percentage of ... View the full answer