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Harley was participating in an experiment in which she was given a pill that was supposed to cause her to get drowsy. Five minutes after taking the pill, Harley reported that she felt drowsy and wanted to lie down. The pill was actually made of sugar and had no ingredients to cause drowsiness. How do you explain Harley's drowsy feeling?
Resale
The act of selling a product or service again, often used goods, to another buyer.
Perfectly Price Discriminate
A pricing strategy where a seller charges the maximum possible price for each unit consumed that each buyer is willing to pay, thus capturing the entire consumer surplus.
Consumer Surplus
The difference between what consumers are willing to pay for a good or service versus what they actually pay.
Federal Trade Commission
The Federal Trade Commission is a United States federal agency established to protect consumers and promote competition by preventing anticompetitive, deceptive, and unfair business practices.
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