Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. The table below shows a portion of her survey results. Potential CustomerWillingness to pay ($ per hour)Arun$8Bernice$9Cara$10Dawn$12 If Julie charges $10 per hour, how manyhours of pet sitting services will bepurchased?If Julie charges $10 per hour, the value ofthe consumer surplus received by Dawn is$.Suppose Julie's marginal cost of providingthis service is constant at $7 and shecharges $7. How many hours will bepurchased ?Suppose Julie's marginal cost of providingthis service is constant at $7 and shecharges $7. Her total revenue is $___Suppose Julie's marginal cost of providingthis service is constant at $7 and shecharges $7. The value of the consumersurplus enjoyed by her customers is $With perfect price discrimination, Julie'stotal revenue will be $

At a marketplace, a consumer will buy a product if his willingness to pay for a good is more than or…

Answered: Potential Customer Willingness to pay…

Business

Economics

Potential Customer Willingness to pay ($ per hour) Arun $8 Bernice $9 Cara $10 Dawn $12

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter5: Buying The Necessities

Section: Chapter Questions

Problem 12AA

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Question

100%

Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. The table below shows a portion of her survey results.

Potential Customer
Willingness to pay ($ per hour)
Arun
$8
Bernice
$9
Cara
$10
Dawn
$12

If Julie charges $10 per hour, how many
hours of pet sitting services will be
purchased?
If Julie charges $10 per hour, the value of
the consumer surplus received by Dawn is
$.
Suppose Julie's marginal cost of providing
this service is constant at $7 and she
charges $7. How many hours will be
purchased ?
Suppose Julie's marginal cost of providing
this service is constant at $7 and she
charges $7. Her total revenue is $___
Suppose Julie's marginal cost of providing
this service is constant at $7 and she
charges $7. The value of the consumer
surplus enjoyed by her customers is $
With perfect price discrimination, Julie's
total revenue will be $

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