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 4567 8 Customer A 0 60 90 115 125 120 110 Total Benefit ($) 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 the total approach and the marginal approach. Show your calculations. (Note: 1. The original $20 per dish offer is no longer available. 2. For the marginal approach, one should also check the condition that whether the implied quantity would give one a higher surplus than that of not dining in this restaurant.)

If the market is described by the given Demand curve, and Supply curve 53, what is total market surplus? 18 Price 16 14 12 10 8 6 4 2 0 2 4 Typed numeric answer will be automatically saved. 6 8 10 Demand 12 14 16 S4 S3 S2 S1 Quantit 18 20

Don't Hand writing in solution

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

Torsten's Marginal Willingness to Pay (MWTP) for flour is given in the table below. If the price of flour falls from $32 to $25, what is the change in Torsten's surplus? Flour can be bought in integer values only. Enter a number only, drop the $ sign. Include a negative sign if surplus decreases. Bags of flour MWTP 1 $48 2 $41 3 $38 4 $27 5 $16 6 $14 7 $7

Eddie goes to Best Buy to buy a new TV. He is willing to pay $400 for the TV he wants. If the price for the TV is $275, what is Eddie's consumer surplus? $125 $675 $275

Consider the market for packs of pens on campus, the demand for which is shown in the graph below. How much larger is consumer surplus when the price of pens is $1 instead of $3?.

Suppose Biwei is the only consumer in the apple market, why is his marginal use value equal to the apple price? Calculate his consumer surplus (net gain from consumption) and fill in the table. How many apples he would like to buy per week?