Question
Question 3 - list five hypothetical Big Joe's customers and for each provide a hypothetical reservation price. The reservations prices should range from $5 to
Question 3 - list five hypothetical Big Joe's customers and for each provide a hypothetical reservation price. The reservations prices should range from $5 to $30. Assuming the actual price of the pizza is $15, calculate consumer surplus.What is the level of sales?
Person | Reservation Price |
Aziza | 5 $ |
Vartan | 10 $ |
Abdullo | 15 $ |
Charos | 20 $ |
Umirbek | 30 $ |
Respond here
Question 4 - Big Joe decides to celebrate his business anniversary by giving these customers a free pizza. What happened to consumer surplus?
Respond here
Question 5 - Finally, is Big Joe "creating value" at the original price of $15? You'll have to make some assumptions to answer this.Include these and your reasoning in your response.
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