1. My friend Mark has asubstantial appetite .An innovative new pizza made with prairie oysters piques his interest .He has never had such a pizza before .His demand for this new delicacy is such that he is willing to pay $10 for the rst pizza slice , $9 for the next , and so on. The pizza costs nothing to make ,the ingredients being donated for free by bulls .The company chooses to sell the pizza for for $5 per slice ,and Mark buys exactly 6 slices .The company's revenues from Mark are thus $30. [a] What is the conSumer Surplus that Mark gets ? [5 points ] [b] The company is at risk of going out of business because of financial problems and asks Mark to pay it a $10 bribe to stay open and continue selling its specialty pizzas at $5 per slice.Assuming the demand in the question ,should Mark be willing to give this payment ? Explain . [5 points ] 2. A consumer spends all her income on marijuana and all other goods [good 2]. An ounce of marijuana costs $20 per unit and the consumer's income is $300. [a] Draw the consumer's budget constraint and show the optimum for a consumer who buys a positive amount of good 2 and marijuana .Let the quantities of marijuana and good 2 be x1 and K: respectively . [5 points ] [b] Now assume that a joint shop ofers the following deal .For a membership fee of $100 , she can buy all the marijuana she wants for $10 per ounce .Draw the new budget constraint under this olifer .[5 points ] [c] Under the offer , show that anyone buying more than 10 ounces before the plan is introduced will join the plan , but anyone buying fewer than 10 ounces may or may not join . [5 points ] [d] Draw an indifference curve diagram showing that if an individual is indifferent between joining and not joining the plan , then she would spend more money on marijuana and purchase more marijuana if she joins the plan than if she doesn't .[5 points ]