Question

From Economy to First Class
Ria was stulying at a reputed Business School in Mumbai Economics teacher was her favourite
because of her teaching style
, linking theory with real life and engaging the class with active
participation Sulla science graduate. Ria found Economics interesting, yet intriguing. For wat
vacation, she had planned to go home (Varanasi) by flight to save time She booked Air India because
it was the first flighi in moming from Mumbai to Varanasi Also luckily she had got her Evounte
window seat in the sixth row. She reached the airport at 6 am.checked in and sunted the endless wat
Due to bad weather conditions and low visibility at Varanasi airport, the flight was delayed She
was imated tired, and hungry, after all reaching Domestic airport at 6 am from Colaba was not an
casy task. Finally at II a.m., they announced boarding.Then happened something unexpected the
official at scanning counter scanned her boarding pass and said. "Ma'am! Your ticket has been
upgraded to first class Would you accept it, please? What could she say? For a middle class girlar
travel was a luxury and first class' was beyond her dreams. She somehow murmuredes
And which she sat on her new upgraded seat she felt like it's a dream come truc The arbustess
came and offered a warm wet towel, a glass of juice...and suddenly like lightening it struck her
is the what Economics teacher meant when she taught consumer surplus?
Case Questions
1 Why did Riu relate seal upgradation with consumer surplus? Discuss.
2 Would diminishing marginal utility occur if it happens to her next time as well? Why or
why not?​

Answer 1

Answer:

yet" (and any subsequent words) was ignored because we limit queries to 32 words.

Answer 2

Answer:

As first developed by Jules Dupuit, French civil engineer and economist, in 1844 and popularized by British economist Alfred Marshall, the concept depended on the assumption that degrees of consumer satisfaction (utility) are measurable.