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$1052nd$903rd$754th$605th6th$45$30Suppose this consumer would not demand any more sessions, even for free. Also assume that the marginal cost to the studio, per session, is constantat $15.5At a price of $82.50 per session, the number of sessions demandedis $and producer surplus is $3consumer would beAt this price and quantity, consumer surplus2Suppose the studio has devised a new pricing scheme for consumerwhereby consumers can pay a flat fee of $303.75 and can have up tUsing this subscription pricing model, this consumer would demandproducer surplus is $total price paid.)6emand more than 1 session. This pricing scheme is a subscription service,sions total.4sessions. Under this scenario, consumer surplus is $and(Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus the

Detailed explanation: At a price of $82.50 per session :The consumer would demand sessions until…

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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Digital piracy. Suppose the British rock band Radiohead is about to release its new album In Rainbows. For now, assume the band cannot choose the price of the album, which is set at $10. The (marginal) cost to distribute each copy is $2. (a) If demand for the album is given by p = 100 - q, how many albums will be sold? What will profits be? (b) Draw the demand curve and indicate the price and quantity of albums sold using your answer to (a). Calculate deadweight loss and show this on your diagram too. (c) Suppose that the introduction of the Internet lowers distribution costs to $0 but also allows consumers to pirate the album for free. Assume that consumers who were not willing to pay $10 will pirate the album. If 50% of consumers that were prepared to pay $10 (or more) for the album also pirate for free, what will Radiohead's profits be? What is deadweight loss?
Suppose there are 800 regular Harry Potter fans and 200 fanatical Harry Potter fans wishing to attend the next theatre production of Hany Potter. The theatre has two classes of seating: ordinary seating and premium seating. The willingness-to-pay of each type of theatre-goer for the two classes of seating, as well as the marginal cost per customer for providing each class of seating, are summarized in the table below: Ordinary Seats Premium Seats $160 $100 Willingness-to-pay: Regular Hary Potter Fan Willingness-to-pay: Fanatical Harry Potter Fan Marginal cost per customer $40 $140 $300 $120 Suppose the concert organiser is considering selling the two dlasses of seats but cannot identify between regular and fanatical fans using observable characteristics. Which of the following is correct? a) The organiser should charge $100 per ticket for both ordinary and premium seats. b) The organiser should charge $160 per ticket for ordinary seats, and $300 per ticket for premium seats. c) The…
Suppose a firm is currently selling 1,000 units of output at a price of $8 per unit and has an advertising budget of $400. Suppose further that the firm can sell one more unit of output by either a $0.02 price discount or by a $8.00 increase in advertising expenditure. Is the firm’s advertising budget optimal? If not, determine the optimal advertising budget.
Q1. Suppose the government is considering an increase in the toll on a certain stretch of highway from $3 to $4. At present, 1 million cars per week use that highway stretch; after the toll is imposed, the number of cars per week will change according to its price elasticity of demand of -0.8 (this elasticity value is estimated based on the initial-value method). If the marginal cost of highway use is constant (i.e., the supply curve is horizontal) and equal to $3 per car, what is the net annual cost to society attributable to the increase in the toll? (your answer must be rounded off to the nearest million dollars per year, i.e., no decimal places; there are 52 weeks in a year)
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Assume you are a single seller of mugs and each buyer’s willingness to pay is below. Assume you incur a cost of $5.00 per unit. (i.e., the marginal cost is constant). How many mugs would you need to sell if you intend to maximise profits, how many mugs would this seller supply to the market, and what price would you charge? Remember, the price has to be the same for each unit sold Buyer Willingness to pay ($) for one mug Bobby 18.00 Jake 16.00 Tara 9.00 Phillip 4.00
1. The marginal price ?? ?? at ? units of demand per week is proportional to the price p. There is no weekly demand at a price of $1000 per unit, that is ?(0) = 1000. There is a weekly demand of 10 units at price of $367.88 per unit, ?(10) = 367.88. (A) Find the price-demand equation. (B) At a demand of 20 units per week, what is the price? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Many restaurants don't take reservations. You simply arrive and wait your turn. If you arrive at 7:30 in the evening, you have at least an hour wait. Notwithstanding that fact, a few people arrive, speak quietly with the maitre d’, hand him some money, and are promptly seated. At some restaurants that do take reservations, there is a month wait for a Saturday evening, three weeks for a Friday evening, two weeks for Tuesday through Thursday, and virtually no wait for Sunday or Monday evening. How do you explain these events using demand and supply?
am. 128.
You provide your services primarily to educational providers, helping them understand how much to charge for their schooling. Imagine that there two types of consumer – high revenue (H) and low revenue (L). Assume demand is given by PL = 1,000–QL/10 and PH = 2,500 – 2QH. In both equations, quantity is in hours of consulting provided. The marginal and average total cost of providing an hour of consulting is $50 per hour. a. Suppose you cannot see who is an H and who is a L, and you can only charge one price. What price do you charge, and how many units do you sell? b. Now imagine you can charge different prices for different quantities, e.g., quantity discounts. Propose a pricing “schedule” (that is, what prices you would offer under what quantity rules) that will allow you to earn greater profit than you would in part a. State how many hours of consulting are sold to each type of consumer.
The regular air fare between Boston and San Francisco is 419. An airline using planes on this route observes that they fly with an average of 236 passengers. Market research tells the airlines’ managers that each $7 fare reduction would attract, on average, 3 more passengers for each flight. How should they set the fare to maximize their revenue?
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working

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