Question
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for$4.25 $4.25. Michelle was willing to pay up to$8.75 $8.75for the cappuccino, and Paul's
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for$4.25
$4.25. Michelle was willing to pay up to$8.75
$8.75for the cappuccino, and Paul's Cafe and Bakery was willing to accept$0.75
$0.75for the cappuccino. Based on this information, answer thequestions.
Michelle's consumersurplus: $_________ Paul's Cafe and Bakery's producersurplus: $ ________
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International Business
Authors: Michael Czinkota, Iikka A. Ronkainen, Michael H. Moffett
8th edition
470530658, 470530650, 978-0470530658
