Patricia decides to buy a pair of boots for $ 9 0 . 0 0 . She
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Patricia decides to buy a pair of boots for $ She was willing to pay $ When her friend Cecilia sees the boots, she loves them and thinks they are worth $ So she offers Patricia $ for the boots, and Patricia accepts. Patricia and Cecilia are both thrilled with the exchange.
The total surplus received by both Patricia and Cecilia is $.
Suppose that Patricia purchased the boots from Maries Boutique. Marie and other boutique owners in town are upset that customers like Patricia buy boots at their stores, and then resell them for a higher price. Marie and the other owners convince the city government to pass a law preventing such resale. Assuming the law is successful, how much surplus is lost if Patricia cannot sell the boots to Cecilia?
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Entrepreneurship Successfully Launching New Ventures
ISBN: 9780132555524
4th Edition
Authors: Bruce R. Barringer, R. Duane Ireland
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