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Unit 5 Discussion
Topic: Tailored Clothes
- Assume that you were ready to buy a custom tailored dress (or menâ€™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 rationale seemed to be at work.