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A local Pilates studio recently began offering a monthhur subscription service for its patrons. Suppose a parb'cular patron at this studio has the following willingneestopa'ir

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A local Pilates studio recently began offering a monthhur subscription service for its patrons. Suppose a parb'cular patron at this studio has the following willingneestopa'ir schedule, per session. Session willingness to Pay lst $34 2nd we 3rd $oo 4th $43 5th $35 6th $24 Suppose this consumer would not demand any more sessionsI even For free. Also assume that the marginal cost to the studio, per session, is constant at $12. At a price of $55.00 per session, the number of sessions demanded by this consumer would be \\:I . At this price and quantity, consumer surplus Suppose the studio has devised a new pricing scheme for consumers who demand more than 1 session. This pricing scheme is a subscription service, whereby.r consumers can pailr a at fee of $243.00 and can have up to 6 sessions total. Using this subscription pricing model, this consumer would demand V 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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