How do you explain profit, surplus, reduction surplus, substitutability, need, proportion budget, and price change

MBA 5010 Week 6 Weekly Assignment Joe's Plain-o Bikes makes and sells a single model of a basic single speed bike. Joe sells the bike to low-end bike shops for $75. They in turn retail the bike for $150. Joe's cost of making each bike is $25 and his overhead averages out to around another $25. Answer the following: Question 1 - What is Joe's profit (or margin) per bike? Respond here Question 2 - What is the producer surplus per bike? Respond here Question 3 - Explain the relationship between these two numbers. Respond here In the example of the Meanwells, we saw that, at a price of zero, consumer surplus was maximized. But there was no producer surplus. Producer surplus then increased as they raised price. Question 4 - Explain why there is a price, above which increasing price actually reduces producer surplus. Respond here The bus service the Meanwells began is the only one in their small city. We'll also assume there's no other alternative form of public transportation. For each of the following determinants of elasticity, evaluate the price sensitivity of their bus service at a price of $3 per ride. Question 5 - Substitutability Response here Question 6 - Need Response here Question 7 - Proportion of Budget Response here Question 8 - Are there any proactive steps the Meanwells might take to reduce the price sensitivity of their bus service so they can increase the price charged? Response here