a. Consumer surplus from the tenth scarf: $ b. Assuming Hugo follows the Rational Rule for Buyers, why did Hugo only purchase 10 scarves when they were on sale? Shouldn't he have purchased more since they were such a good deal compared to what he was willing to pay? At a price of $12, Hugo determined that buying an eleventh scarf gave him more than $12 in benefit. buying an eleventh scarf gave him less than $8 in consumer surplus. buying an eleventh scarf gave him less than $12 in benefit. the price exceeded his marginal cost. Now suppose the manager at Macy's had 100 scarves in inventory. She decided to put the scarves on sale for $10. but an

a. Consumer surplus from the tenth scarf: $ b. Assuming Hugo follows the Rational Rule for Buyers, why did Hugo only purchase 10 scarves when they were on sale? Shouldn't he have purchased more since they were such a good deal compared to what he was willing to pay? At a price of $12, Hugo determined that buying an eleventh scarf gave him more than $12 in benefit. buying an eleventh scarf gave him less than $8 in consumer surplus. buying an eleventh scarf gave him less than $12 in benefit. the price exceeded his marginal cost. Now suppose the manager at Macy's had 100 scarves in inventory. She decided to put the scarves on sale for $10. but an

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter11: Marketing And Distribution

Section: Chapter Questions

Problem 11AA

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