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6. On Thursday nights, a local restaurant haspasta special. Ari likes the restau

ID: 1237425 • Letter: 6

Question

6. On Thursday nights, a local restaurant haspasta special. Ari likes the restaurant’s pasta, and hiswillingness to pay for each serving is shown in the accompanyingtable.

a. If the price of a serving of pasta is $4, howmany servings will Ari buy? How much consumer surplus does hereceive?

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

c. One week later, he goes to the restaurantagain. He discovers that the restaurant is offering an “allyou 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 cancharge for the “all you can eat” special and stillattract customers?

Explanation / Answer

please provide the "accompaning table"

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