The accompanying table shows the supply and demand schedules for used copies of the fourth edition of this textbook. The supply schedule is derived from offers at Amazon.com. The demand schedule is hypothetical.

Quantity of boo | Quantity of boo Priceofbook | ksdemanded | ks supplied $55 50 0 60 35 1 65 25 3 70 75 80 85 90 95 100 105 110 BR BSocaw 37 onranSihRS 42

a. Calculate consumer and producer surplus at the equilibrium in this market.

b. Now the fifth edition of this textbook becomes available. As a result, the willingness to pay of each potential buyer for a second-hand copy of the fourth edition falls by $20. Ina table, show the new demand schedule and again calculate consumer and producer surplus at the new equilibrium. 7.0n Thursday nights, a local restaurant has a pasta special. Ari likes the restaurant’s pasta, and his willingness to pay for each serving is shown in the accompanying table.
Quantity of pasta (servin | Willingness to pay for pa sta (per serving) $10 8 oo ao Bio

a. If the price of a serving of pasta is $4, how many servings will Ari buy? How much consumer surplus does he receive?

b. The following week, Ari is back at the restaurant again, but now the price of a serving of pasta is $6. By how much does his consumer surplus decrease compared to the previous week?

c. One week later, he goes to the restaurant again. He discovers that the restaurant is offering an “all-you-can-eat” special for $25. How much pasta will Ari eat, and how much consumer surplus does he receive now?

d. Suppose you own the restaurant and Ari is a typical customer. What is the highest price you can charge for the “all-you-can-eat” special and still attract customers?