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Rohit consumes Nespresso coffee pods. His individual monthly demand is given by P = 10 - 0.2Q (or Q = 50-5P) where Q is the
Rohit consumes Nespresso coffee pods. His individual monthly demand is given by P = 10 - 0.2Q (or Q = 50-5P) where Q is the number of Nespresso pods and P is the price in $. Currently, Nespresso charges $1 per pod. The company is considering an alternative plan where they charge a fixed monthly fixed fee of $200 that allows consumers to consume an unlimited number of pods at no additional per-pod price. What is Rohit's consumer surplus (CS) under the current plan, and what would it be under the new plan? A : CS current plan = $202.5; CS new plan = $250. B: CS current plan = $202.5; CS new plan = $0. C: CS current plan = $202.5; CS new plan = $50. D: CS current plan = $405; CS new plan = $50
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