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4. On Thursday nights, Hacienda Pizza Co. has a pasta special. Jacob likes the restaurant's pasta, and his willingness to pay for each serving is shown in the accompanying table: Quantity of Pasta (servings) Willingness to pay for pasta (per serving) $10 S8 S6 $4 S2 $O 1 4 6. a. If the price of a serving of pasta is $5, how many servings will Jacob buy? How much consumer surplus does he receive? b. The following week, Jacob is back, but now the price of a serving is $6. By how much does his consumer decrease compared to the first week? c. One week later, he goes to the restaurant again. He discovers that the restaurant is offering an "all you can eat" special for $25. How much pasta will Jacob eat, and how much consumer surplus does he receive now? d. Suppose you own Hacienda Pizza Co and Jacob is a "typical" customer. What is the highest price you can charge for the "all you can eat" special and still attract customers?

4. On Thursday nights, Hacienda Pizza Co. has a pasta special. Jacob likes the restaurant's pasta, and his willingness to pay for each serving is shown in the accompanying table: Quantity of Pasta (servings) Willingness to pay for pasta (per serving) $10 S8 S6 $4 S2 $O 1 4 6. a. If the price of a serving of pasta is $5, how many servings will Jacob buy? How much consumer surplus does he receive? b. The following week, Jacob is back, but now the price of a serving is $6. By how much does his consumer decrease compared to the first week? c. One week later, he goes to the restaurant again. He discovers that the restaurant is offering an "all you can eat" special for $25. How much pasta will Jacob eat, and how much consumer surplus does he receive now? d. Suppose you own Hacienda Pizza Co and Jacob is a "typical" customer. What is the highest price you can charge for the "all you can eat" special and still attract customers?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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4. On Thursday nights, Hacienda Pizza Co. has a pasta special. Jacob likes the restaurant's pasta, and his willingness to pay for each serving is shown in the accompanying table: Quantity of Pasta (servings) Willingness to pay for pasta (per serving) $10 $8 $6 S4 1 2 3 4 $2 6. $O If the price of a serving of pasta is $5, how many servings will Jacob buy? How much consumer surplus does he receive? b. a. The following week, Jacob is back, but now the price of a serving is $6. By how much does his consumer decrease compared to the first week? One week later, he goes to the restaurant again. He discovers that the restaurant is offering an "all you can eat" special for $25. How much pasta will Jacob eat, and how much consumer surplus does he receive now? d. Suppose you own Hacienda Pizza Co and Jacob is a "typical" customer. What is the highest price you can charge for the "all you can eat" special and still attract customers? с.
Transcribed Image Text:4. On Thursday nights, Hacienda Pizza Co. has a pasta special. Jacob likes the restaurant's pasta, and his willingness to pay for each serving is shown in the accompanying table: Quantity of Pasta (servings) Willingness to pay for pasta (per serving) $10 $8 $6 S4 1 2 3 4 $2 6. $O If the price of a serving of pasta is $5, how many servings will Jacob buy? How much consumer surplus does he receive? b. a. The following week, Jacob is back, but now the price of a serving is $6. By how much does his consumer decrease compared to the first week? One week later, he goes to the restaurant again. He discovers that the restaurant is offering an "all you can eat" special for $25. How much pasta will Jacob eat, and how much consumer surplus does he receive now? d. Suppose you own Hacienda Pizza Co and Jacob is a "typical" customer. What is the highest price you can charge for the "all you can eat" special and still attract customers? с.
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