Suppose that Anne buys three pairs of designer shoes at $200 a pair. If the price...
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:
A. she earned no consumer surplus.
B. she might have earned some consumer surplus on the first two pairs of shoes.
C. she would have earned consumer surplus if she bought one more pair of shoes.
D. she would have earned more consumer surplus if she bought one fewer pair of shoes.
E. None of the above
Homework Answers
B. she might have earned some consumer surplus on the first two pairs of shoes.
(Willingness to pay of first two pairs of shoes might be greater than $200 so she would have earned some CS.)
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