In: Economics
A and B are considering living alone or being roommates and splitting the rent for the next twelve months. A one-bedroom, one-bath apartment is $500 per month while a two-bedroom, one-bath apartment is $800. The one difficulty they have is that B snores very loudly. A estimates the cost of poor sleep due to B’s snoring at $150 per month. B could obtain a snore-eliminating device for $50 per month.
If A pays for the snore-eliminating device and they share the surplus equally, A’s share of the rent will be____ and B’s share of the rent will be ____.
a) $450; $350
b) $350; $450
c) $375; $425
d) $425; $375
The correct answer is c) $375; $425, but I'm having trouble understanding exactly why. I need to see it worked out and explained in order to understand the logic and thought process.
Solution :
One bedroom, one bath apartment Cost = $500/month.
$150 surplus is shared by both, it means that $75 for each and if only A pays $50 for snore eliminating device then both rent shares can be calculated as follows ;
A's share = $500-$50-$75 = $375
A's share = $375
Since B does not pay for the snore eliminating device,
B's share = $500-$75 = $425
B's share = $425