ECN220_heyward_wk3_assignment.docx - Consumer Surplus Ex 1 Consumer Surplus Ex Timothy Heyward ECN220_Economic Sep 25 2019 Consumer Surplus Ex 2 If the

ECN220_heyward_wk3_assignment.docx - Consumer Surplus Ex 1...

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Consumer Surplus Ex. 1 Consumer Surplus Ex. Timothy Heyward ECN220_Economic Sep. 25, 2019
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Consumer Surplus Ex. 2 If the price to repaint her apartments is $5,000 each, how many will she repaint? 1 What is the value of her consumer surplus? 0 Suppose the price to repaint her apartments falls to $2,000 each. How many apartments will Lori choose to have repainted? What is the value of her consumer surplus? 2 and surplus would be at a thousand. What happened to Ms. Landlord’s consumer surplus when the price of having her apartments repainted fell? Why? Its erased. Because at some point the cost raised will remove any surplus to my understanding.
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Consumer Surplus Ex. 3 When I think of consumer surplus, I always see it as a high advantage for customers to save some change. The price I would be willing to pay usually not so bad, but when you add in the discounted price that you are actually paying. My experience of consumer surplus came from purchasing a suit. The original tag price for the suit was $499. The actual price I bought it for
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Unformatted text preview: was $299. It would seem that that would just be a $200 surplus. I bought the suit with a dress shirt and tie which really boost my surplus slightly over $300. For me the surplus happens because of overstock. Reason why I felt I should’ve paid more was because I have the understanding that it cost to look good. Another experience I had with consumer surplus was when I purchased a suite at a resort. The surplus was close to $200 which is a lot when it comes to hotels and resorts. This was able to happen because I purchased the room during the winter season when there isn’t a high demand for it. Which allowed the price to drop as low as it did. These are common things that most people don’t really look too much into it. When you look for a hotel or resort suite you always looking for discounted rooms. You never really paying attention to actual cost....
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