Luke and Manny’s class is having a yard sale to benefit UNICEF, but Jay hates when people haggle. Even though the ash tray is marked at 50 cents, he is unwilling to accept a lower payment from a man who clearly can afford the full ticket price. The man, on the other hand, believes the original price is too high and tries to extract some consumer surplus. Exchange needs to be mutually beneficial in order to occur, but sometimes that doesn’t happen.
See more: consumer surplus, exchange, negotiation, prices, producer surplus, reservation price, transactions, willingness to buy, willingness to sell
Economics of Modern Family 