Please check out Dr. Hameresh's blog. A link to his econthought is found on the right. His blogs show everyday applications of econ 101 subjects. An example I pasted is below.
I went to buy a glorious Montecristo cigar at the local liquor store. The price on the label was $9.99, and I was happy to purchase it at that price. The cashier rings it up, though, at $5.99. I tell him that the sticker said $9.99, and he says, “Well, given how honest you were, I’m charging you only $8.99.” Fine with me. Especially fine because I was willing to buy it at $9.99, so I must be getting some consumer surplus even at that high price. My honesty, and the cashier’s concession, means that he is giving me an extra $1 of consumer surplus—and that the producer surplus is $1 less. His loss exactly equals my gain; but presumably he still gets some producer surplus, or he wouldn’t be offering the cigar to me at $8.99.
Although Dr. Hameresh received a boost in his consumer's surplus, I think he experienced an income effect and maximization of utility. What other micro concept?
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