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From Economy to First ClassRia was stulying at a reputed Business School in Mumbai Economics teacher was her favouritebecause of her teaching style, linking theory with real life and engaging the class with activeparticipation Sulla science graduate. Ria found Economics interesting, yet intriguing. For watvacation, she had planned to go home (Varanasi) by flight to save time She booked Air India becauseit was the first flighi in moming from Mumbai to Varanasi Also luckily she had got her Evountewindow seat in the sixth row. She reached the airport at 6 am.checked in and sunted the endless watDue to bad weather conditions and low visibility at Varanasi airport, the flight was delayed Shewas imated tired, and hungry, after all reaching Domestic airport at 6 am from Colaba was not ancasy task. Finally at II a.m., they announced boarding.Then happened something unexpected theofficial at scanning counter scanned her boarding pass and said. "Ma'am! Your ticket has beenupgraded to first class Would you accept it, please? What could she say? For a middle class girlartravel was a luxury and first class' was beyond her dreams. She somehow murmuredesAnd which she sat on her new upgraded seat she felt like it's a dream come truc The arbustesscame and offered a warm wet towel, a glass of juice...and suddenly like lightening it struck heris the what Economics teacher meant when she taught consumer surplus?Case Questions1 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 orwhy not?i need answers in 150 words |
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