You just moved into your new apartment, which has washer and dryer hookups, but your apartment complex doesn't
provide washers and dryers. You don't want to go to a laundromat. You can rent a washer and dryer set from an appliance
rental company for $30 per month. Alternatively, you could buy a set for $1,100, which you could sell after one year for
$700, or $600 after two years. You plan to stay in this apartment for two years, since it's near your job. Should you buy or
rent the set?
You should rent the set because renting earns $40 worth of economic surplus.
You should rent the set because renting earns $400 worth of economic surplus.
You should buy the set because buying earns $220 worth of economic surplus.
You should buy the set because buying earns $500 worth of economic surplus.