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Judy Carl Has Been Eyeing for Weeks a Prada Handbag

Question 68

Multiple Choice

Judy Carl has been eyeing for weeks a Prada handbag (made in Milan, Italy) in the store window at Neiman-Marcus. She is willing to pay $250 for it (a birthday gift for herself,she rationalizes) if the price ever came down to that. Well, she is in luck! It goes on salefor $200, down from $325. She rushes in to make the purchase. She not only gets the handbag, but also a consumer surplus of


A) $125
B) $50
C) $200
D) $75
E) $375

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