A price drop increases consumer surplus by allowing purchases already being made to be made at a lower price, allowing current buyers to purchase more goods for the same money, and ______.

In the figure above, Nike maximizes its profit if it charges ________ per pair of shoes

A) $75 B) $60 C) $72 D) $42

Why do consumers sometimes take a while to respond to price changes?

(A) Consumers need time to decide whether the good is a luxury or a necessity. (B) Price changes do not affect consumers. (C) Demand sometimes becomes less elastic over time. (D) Consumers cannot find acceptable substitutes immediately.