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local Pilates studio recently began offering a monthly subscription service for its patrons. uppose a particular patron at this studio has the following willingness-to-pay schedule, per session. Session Willingness to Pay 1st $70 2nd $60 3rd $50 4th $40 5th $30 630

local Pilates studio recently began offering a monthly subscription service for its patrons. uppose a particular patron at this studio has the following willingness-to-pay schedule, per session. Session Willingness to Pay 1st $70 2nd $60 3rd $50 4th $40 5th $30 630

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
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Back to Assignment Attempts 2. Individual Problems 14-2 Keep the Highest /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 $70 2nd $60 3rd $50 4th $40 5th $30 6th $20 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 $10. At a price of $55.00 per session, the number of sessions demanded by this consumer would be is $ and producer surplus is 2. At this price and quantity, consumer surplus 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 $202.50 and can have up to 6 sessions total. Using this subscription pricing model, this consumer would demand producer surplus is S total price paid.) sessions. Under this scenario, consumer surplus is $ and (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus the
Transcribed Image Text:Back to Assignment Attempts 2. Individual Problems 14-2 Keep the Highest /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 $70 2nd $60 3rd $50 4th $40 5th $30 6th $20 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 $10. At a price of $55.00 per session, the number of sessions demanded by this consumer would be is $ and producer surplus is 2. At this price and quantity, consumer surplus 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 $202.50 and can have up to 6 sessions total. Using this subscription pricing model, this consumer would demand producer surplus is S total price paid.) sessions. Under this scenario, consumer surplus is $ and (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus the
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