Question

Market efficiency and Market Failure

describe a personal experience of when you purchased a product or service whereby you feel you minimized surplus as a consumer but the supplier surplus was not maximized.

Answer 1

My major hobby is to shop online.So I spend a lot of money to buy clothes online .As every consumer does , I feel very happy when I get a chance to maximise my surplus .  But recently I experienced that I had minimized my surplus when I purchased clothes online.

I was shopping from a website and put many clothes on the cart at discounted price and not on regular price. I left the website after sometime and started doing some other work. The next day when I went back to the website,the discount was no longer there and all the merchandise was on regular price.So instead of buying the clothes at a discounted price , I had no other option but to purchase on a regular price.So my surplus was minimized.The supplier surplus was not maximised as the  clothes were on discounted price for a long time.