5. Individual Problems 14-2 A local Pilates studio recently began offering a monthly subscription service for its patrons. Suppose a particular patron at this studio has the following willingness-to-pay schedule, per session. Session 1st 2nd 3rd 4th 5th 6th Willingness to Pay $70 $60 $50 $40 $30 $20 Suppose this consumer would not demand any more s at $10. At a price of $65.00 per session, the number of session is S and producer surplus is S Suppose the studio has devised a new pricing scheme whereby consumers can pay a flat fee of $216.00 and 6 5 4 3 even for free. Also assume that the marginal cost to the studio, per session, is constant nded by this consumer would be . At this price and quantity, consumer surplus 2 umers who demand more than 1 session. This pricing scheme is a subscription service, e up to 6 sessions total. Using this subscription pricing model, this consumer would demand and producer surplus is $ the total price paid.) sessions. Under this scenario, consumer surplus is $ (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus

5. Individual Problems 14-2 A local Pilates studio recently began offering a monthly subscription service for its patrons. Suppose a particular patron at this studio has the following willingness-to-pay schedule, per session. Session 1st 2nd 3rd 4th 5th 6th Willingness to Pay $70 $60 $50 $40 $30 $20 Suppose this consumer would not demand any more s at $10. At a price of $65.00 per session, the number of session is S and producer surplus is S Suppose the studio has devised a new pricing scheme whereby consumers can pay a flat fee of $216.00 and 6 5 4 3 even for free. Also assume that the marginal cost to the studio, per session, is constant nded by this consumer would be . At this price and quantity, consumer surplus 2 umers who demand more than 1 session. This pricing scheme is a subscription service, e up to 6 sessions total. Using this subscription pricing model, this consumer would demand and producer surplus is $ the total price paid.) sessions. Under this scenario, consumer surplus is $ (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6
At which price equilibrium exist
1. Explain what is meant by an Inferior Good. What information is required to establish whether a particular good is inferior?
1. The Reinheitsgebot is a set of laws established in the 1500s that regulate the production and sale of beer in Germany. Among its provisions, the edict set maximum prices that brewers could charge at various times of the year: During Oktoberfest, the price for one [Bavarian Liter] is not to exceed one Pfennig (Penny, Munich value). Suppose that the demand for beer is given by $QD = 6000-1600P, and the supply of beer is given by QS = -1000+2000P. a) If a 1-Pfennig price ceiling is imposed, does the price ceiling make society better off? Does it make beer producers better off? Does it make beer drinkers better off?
9. a) Explain law of demand, willingness to pay and diminishing marginal benefit briefly? b) What factors cause to demand curves to shift and what is the reason for a movement along the demand curve?
A computer store sells WP and SS. Given below are themaximum amounts two consumers will pay for these goods and for a bundle that contains bothgoods. WP SS Bundle carolina $100 $90 $190 shawn $90 $40 $130 (a) What is the firm’s revenue if it sells the WP at a price of $90 and the SSat a price of $90? The goods are only available individually and not as a bundle. Please showyour calculations.(b) Will the firm charge $130 or $190 for the bundle if it wants to earn maximum revenue?Assume that the goods are only sold as a bundle and not available separately. Please explain.(c) Will selling individually or selling a bundle result in higher revenues?
Don't copy from any source give legible and new answer asaaap
36 Social Cost 30 30 24 24 18 PRICE (Dollars per unit) 2 6 Supply Demand H 100 200 300 400 500 600 QUANTITY (Units of plastic) Refer to Figure 10-6. In order to reach the social optimum, the government could O impose a tax of $3 per unit on plastics. impose a tax of $9 per unit on plastics. O impose a tax of $12 per unit on plastics. Ooffer a subsidy of $9 per unit on plastics.
8. If the demand equation is Q =100–10Pfind the consumer's surplus when the consumer purchases 18 units. What is the revenue of the seller?
2) The diagram below represents the market for battery packs. If the price were currently at $28/pack there would be a: Group of answer choices surplus of 4 battery packs surplus of 20 battery packs shortage of 4 battery packs shortage of of 20 battery packs
9. Explain the concepts of producer surplus and consumer surplus in your own words. Use the example of a market for computer games in your explanation.
18. Just give the letter answer please!!! Refer to the board. At the equilibrium price, the consumer's surplus would be • a) $o b) $ 8 • c) $ 12 • d) $16