Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

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

Schaums Outline Of College Physics

Authors: Eugene Hecht

12th Edition

1259587398, 978-1259587399

Students also viewed these Economics questions