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2. Individual Problems 14-2 A local Pilates studio recently began offering a monthly:r subscripon service for its patrons. Suppose a parlicular patron at this studio
2. Individual Problems 14-2 A local Pilates studio recently began offering a monthly:r subscripon service for its patrons. Suppose a parlicular patron at this studio has the following willingnesstomesr schedule, per session. Session Willingness to Pawr lst $105 2nd $90 3rd $?5 4th $50 5th $45 6th $30 Suppose this consumer would not demand an'rr more sessions, even for free. Also assume that the marginal cost to the studio, per session, is constant at $15. At a price of $82.50 per session, the number of semions demanded by this consumer would be S . At this price and quantity, consumer surplus Suppose 'd'le studio has devised a new pricing scheme for consumers who demand more than 1 session. This pricing scheme is a subscription service. wherebyr consumers can pailr a at fee of $303.?5 and can have up to 6 sessions total. Using this subscription pricing model, this consumer would demand 7 sessions. Under this scenario, consumer surplus is and producer surplus is . (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)
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