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Essay text:
Those who value a bottle of mineral water at RM5.00 or more will buy it and would obtain consumer surpluses. (Case & Fair, 2004) Consumers will buy a product regardless of the increased price from the initial market price only if there is extra utility (consumer surplus) for them and the price does not exceed their budget.
For instance, Bob dropped by a shop and he decided to buy five bottles of mineral water at RM5.00 per bottle. The first bottle was worth RM10 to him, his second RM9, his third RM8, his fourth RM7, and his fifth RM6. A sixth bottle would either worth below RM5.00 to him or simply worthless...
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