Lane and Riley are the only two residents in a neighborhood, and they share the same driveway. They would like to have the driveway paved. The value of the paved driveway is $1,500 to Lane and $900 to Riley. Regardless of who pays for the paving both people will benefit from it. If the cost of paving the driveway is $2,000 and Lane proposes that they each pay 50 percent of this cost, then Riley ________ agree to Lane's proposal because ________.
A. will not; if they split the cost, then Riley's economic surplus would decrease
B. will not; repaving the driveway would lower total economic surplus
C. will; repaving the driveway would increase total economic surplus
D. will; if they split the cost, then Riley's economic surplus would increase
Answer: A
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