2. Individual Problems 14-2A 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.SessionWillingness to Pay1st $772nd $663rd $554th $445th $336th $22Suppose this consumer would not demand any more sessions, even for free. Also assume that the marginal cost to the studio, per session, is constant at $11.At a price of $71.50 per session, the number of sessions demanded by this consumer would be . At this price and quantity, consumer surplus is $ and producer surplus is $.Suppose the studio has devised a new pricing scheme for consumers who demand more than 1 session. This pricing scheme is a subscription service, whereby consumers can pay a flat fee of $237.60 and can have up to 6 sessions total.Using this subscription pricing model, this consumer would demand sessions. Under this scenario, consumer surplus is$and producer surplus is$. (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.) 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.SessionWillingness to Pay1st$772nd$663rd$554th$445th$336th$22Suppose this consumer would not demand any more sessions, even for free. Also assume that the marginal cost to the studio, per session, is constantat $11.At a price of $71.50 per session, the number of sessions demanded by this consumer would beAt this price and quantity, consumer surplusis $and producer surplus is $Suppose the studio has devised a new pricing scheme for consumers who demand more than 1 session. This pricing scheme is a subscription service,whereby consumers can pay a flat fee of $237.60 and can have up to 6 sessions total.Using this subscription pricing model, this consumer would demandsessions. Under this scenario, consumer surplus is $andproducer surplus is $. (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus thetotal price paid.)

Willingness to pay refers to the maximum amount that a consumer is willing to spend in obtaining a…

Answered: A local Pilates studio recently began…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. 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 Willingness to Pay 1st $77 2nd $66 3rd $55 4th $44 5th $33 6th $22 Suppose this consumer would not demand any more sessions, even for free. Also assume that the marginal cost to the studio, per session, is constant at $11. At a price of $71.50 per session, the number of sessions demanded by this consumer would be . At this price and quantity, consumer surplus is $ and producer surplus is $ . Suppose the studio has devised a new pricing scheme for consumers who demand more than 1 session. This pricing scheme is a subscription service, whereby consumers can pay a flat fee of $237.60 and can have up to 6 sessions total. Using this subscription pricing model, this consumer would demand sessions. Under this scenario, consumer surplus is $ and producer surplus is $ . (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)

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
Willingness to Pay
1st
$77
2nd
$66
3rd
$55
4th
$44
5th
$33
6th
$22
Suppose this consumer would not demand any more sessions, even for free. Also assume that the marginal cost to the studio, per session, is constant
at $11.
At a price of $71.50 per session, the number of sessions demanded by this consumer would be
At this price and quantity, consumer surplus
is $
and producer surplus is $
Suppose the studio has devised a new pricing scheme for consumers who demand more than 1 session. This pricing scheme is a subscription service,
whereby consumers can pay a flat fee of $237.60 and can have up to 6 sessions total.
Using this subscription pricing model, this consumer would demand
sessions. Under this scenario, consumer surplus is $
and
producer surplus is $
. (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus the
total price paid.)

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