Microeconomics Discussion Unit 4 Topic: Tailored Clothes Assume that you are ready to buy a custom-tailored dress (or suit) and you are prepared to pay up to $200 for it. Also, assume that the tailor is prepared to sell the 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. Provide at least one example of a purchase you have made where you received a consumer surplus. Be sure to include the price you were willing to pay, the price you actually paid, and the resulting consumer surplus.

125 to 150