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Suppose that Anne buys three pairs of designer shoes at $200 a pair. If the price equals the amount ...

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Suppose that Anne buys three pairs of designer shoes at $200 a pair. If the price equals the amount ...

Suppose that Anne buys three pairs of designer shoes at $200 a pair. If the price equals the amount Anne is willing to pay for the third pair, then:

▸ she earned no consumer surplus.

▸ she would have earned consumer surplus if she bought one more pair of shoes.

▸ she would have earned more consumer surplus if she bought one fewer pair of shoes.

▸ she might have earned some consumer surplus on the first two pairs of shoes.

Textbook

Microeconomics: Principles, Applications, and Tools

Edition: 8^th

Authors: O'Sullivan, Sheffrin, Perez

Read 146 times

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toripollard8 Author

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Good timing, thanks!

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