No written by hand solution 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.Session1st2nd3rd4th5th6thWillingness to Pay$77$66$55$44$33$22Suppose this consumer would not demand any more sessions, even for free. Also assume that the marginal cost to the studio, per session, is constantat $11.At a price of $71.50 per session, the number of sessions demanded by this consumer would beis Sand producer surplus is $. At this price and quantity, consumer surplusSuppose 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 $237.60 and can have up to 6 sessions total.Using this subscription pricing model, this consumer would demand sessions. Under this scenario, consumer surplus is $producer surplus is $total price paid.)and. (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus the

Willingness to pay refers to the maximum amount that a consumer is willing to spend in obtaining a…

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 $77 2nd $66 II 3rd $55 4th $44 5th $33 $22 6th 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 $11.

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 $77 2nd $66 II 3rd $55 4th $44 5th $33 $22 6th 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 $11.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.4P

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