Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part II. Short Answer Problems Problem 1 (4 parts worth 50 points total). SHOW ALL WORK. Quite a Stretch Yoga offers yogis (people who practice

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Part II. Short Answer Problems Problem 1 (4 parts worth 50 points total). SHOW ALL WORK. Quite a Stretch Yoga offers yogis (people who practice yoga) one yoga class per day at their studio in Columbia, MD. They use two pricing options: a daily rate and a monthly pass. The daily rate at $10 entitles a yogi to one yoga class-that is $10 per class (the daily option). Alternatively, for a monthly payment of $55, a yogi can take 12 yoga classes in a one month period-that is, $55 for 12 yoga classes (monthly rate option). Yogis who want more than 12 classes a month pay the daily rate of $10 per additional class. Stella, a triathlete, is considering adding yoga to her training regimen. Stella's demand curve for yoga is given by: P =28-2Q where P is price (in dollars) per day and Q is the number of classes per month a) (12 points) Draw and label Stella's demand curve. For each of the questions below, explain your answers and illustrate on the graph. (a) How many classes will she take a month if she chooses the daily rate option? (b) How much will she spend a month if she chooses the daily rate option? (c) What would the average price per class be if she chooses the daily rate option?b) (12 points) Now consider the monthly rate option ($55 for 12 yoga classes. Yogis who want more than 12 classes a month pay the daily rate of $10 per additional class). For the questions below, explain your answer and illustrate on a graph. (a) How many classes will Stella take in a month? (b) How much will she spend? (c) What is her average price per class?c) (12 points) Which pricing option would Stella prefer? Show your calculations and explain your answer.for a monthly payment of $55 , a yogi can take 12 yoga classes in a one-month periodthat is, $55 for 12 yoga classes (monthly rate option). Yogis who want more than 12 classes a month pay the daily rate of 32 W additional class. (a) How many classes will Stella take in a month? (b) How much will she spend? (0) What is her consumer surplus

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Local Consumption And Global Environmental Impacts Accounting, Trade-offs And Sustainability

Authors: Kuishuang Feng, Klaus Hubacek, Yang Yu

1st Edition

1317577272, 9781317577270

More Books

Students also viewed these Economics questions

Question

1. Maintain my own perspective and my opinions

Answered: 1 week ago

Question

2. What do the others in the network want to achieve?

Answered: 1 week ago