(Answered) Assume that you were ready to buy a custom tailored dress

Economics

Assume that you were ready to buy a custom tailored dress (or men's suit) and you are prepared to pay up to $200 for it. Also assume that the tailor is prepared to sell that item of clothing for as little as $100.

When you arrive at the tailor shop, the posted price for the item is $150. Discuss how this scenario relates to producer and consumer surplus and how such surpluses, if any, affect buying and manufacturing decisions

Discuss any recent purchases you have made and for which you feel that a similar rational seemed to be at work.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91521713
Price:- $25

Verified Expert

Priced at $50 Now at $25, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question suppose a monopoly market has a demand function in

Question: Suppose a monopoly market has a demand function in which quantity demanded depends not only on market price (P) but also on the amount of advertising the firm does (A, measured in dollars). The specific form of ...

Question assume that the consumer purchases only two goods

Question: Assume that the consumer purchases only two goods, x and y. Based on the information in each of the following parts, sketch a plausible set of indifference curves (that is, draw at least two curves, and indicat ...

Question an electric generator was purchased for 15000 use

Question: An electric generator was purchased for $15,000. Use the sum-of-years digits (SOYD) depreciation accounting method with a $2,000 salvage value and a 10-year depreciation life. Develop a depreciation schedule fo ...

Question based on your reading of the first two chapters of

Question: Based on your reading of the first two chapters of the text, focus in on one of the main concepts covered (e.g., scarcity, ceterus pariubus, association vs. causation, opportunity cost, marginal analysis, etc.) ...

Question suppose in singapore the velocity of money is

Question: Suppose in Singapore the velocity of money is constant, real GDP grows by 7% per year, the stock on money grows by 10% per year, and the nominal interest rate is 8%. (a) According to the quantity theory, what m ...

Question the market demand for stuffed rabbits is q 2600 -

Question: The market demand for stuffed rabbits is Q = 2,600 - 20P, and the government intends to place a $4 per bunny tax on stuffed rabbit purchases (tax collected from sellers). Calculate the tax incidence and deadwei ...

Question what happens to a firms expansion path if one of

Question: What happens to a firm's expansion path if one of its inputs permanently falls in price while the price of the other remains constant? The response must be typed, single spaced, must be in times new roman font ...

Question identify a solution that the business community

Question: Identify a solution that the business community appears to favor for the current annual budget deficit in the US. For example, in the area of health care, the business community may prefer a policy that permits ...

Question consider a monopoly with a horizontal marginal

Question: Consider a monopoly with a horizontal marginal cost schedule. If a tax t is imposed on the monopolist, show that: (a) Price increases by exactly half the tax if the monopolist faces a linear demand curve p = a ...

Question you are 20 years old and you would like to have

Question: You are 20 years old, and you would like to have $1,000,000 in your retirement savings account when you are 60 years old. You need to start saving for retirement right away because of the time value of money. H ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert