Problem: You attend an auction and in your mind agree to pay $100 for an item, but you are able to purchase at $50.
Q1. Discuss the comparison of the utility of the $100 versus the utility of the good and how a voluntary exchange results in a win/win situation to both parties.
Q2. Has the utility of the item increased because of the lower price and why?
Q3. As a result of the lower price, has your total utility increased and why?