882 283 222 2 100 PRICE 90 80 70 60 50 40 30 20 MR MC Q-30 and P-301 Q-45 and P-45 Q-60 and P-30 Q-30 and P-60 Demand 10 20 30 40 50 60 70 80 90 100 QUANTITY Refer to Figure 15-7. To maximize total surplus, a benevolent social planner would choose which of the following outcomes?

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

50 45 - 40 35 - 30 25 20 Price 15 10 5 0 1 0 10 20 30 40 50 60 70 80 90 100 Quantity Consider the figure shown. What is the consumer surplus when the P=$25? k

1.2 Consider the following customers of a Japanese sushi restaurant. Their total benefit (TB) measured in terms of the maximum amount of money they are willing to pay for n dishes are given below. Dish of sushi 0 1 2 3 4 5 6 7 8 Customer A 0 60 90 Total Benefit ($) 115 125 120 110 95 70 Customer B 0 30 50 60 55 50 40 25 5 As postulated in economics, customers are maximizing their economic surpluses. One can decide not to dine in this Japanese restaurant and can get zero economic surplus. (a) The sushi restaurant is now charging customers $20 per dish. How many dishes do these two customers choose to buy under this pricing arrangement respectively? Use both total and marginal approach to solve the problem. Show your steps. (b) Now, the sushi restaurant changes its pricing policy. Now they charge each customer $100 and let them order as many as they want. Will the customers continue to dine in this restaurant? If so, how many dishes would they choose to buy? Again, solve this using both…