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1.2 Consider the following customers of a Japanese sushi restaurant. Their total benet (TB) measured in terms of the maximum amount of money they are

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1.2 Consider the following customers of a Japanese sushi restaurant. Their total benet (TB) measured in terms of the maximum amount of money they are willing to pay for n dishes are given below. Total Benet $ Dish of sushi Customer A Customer B 0 0 O 1 till) 30 2 96 50 3 115 60 4 125 55 5 120 50 110 40 T 95 25 8 m 5 As postulated in economics. customers are maximizing their economic surpluses. IIl'lne 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.) (c) A student thinks that \"for those who would order fewer than 5 dishes of sushi. their average price per dish is higher in the new pricing scheme (b) than in the original one (a). so he will order fewer dishes in the new scheme (b) than in the original one (a).' Critically comment on this statement. Explain your reasoning

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