Homework Surplus Questions

Description

Assume that you were ready to
buy a custom tailored dress (or mens 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