Register to read the introduction…
How much consumer surplus does he receive?
At $3 she is getting an additional 3 servings, which is a surplus of 6 additional chicken nuggets. (if the chicken nuggets graph, is the individual number of nuggets, making a serving. For example: 1 serving = 1 extra chicken nugget)
b. The following week, Nina and Braden are back at the restaurant again, but now the price of a serving of chicken nuggets is $4. By how much does his consumer surplus decrease compared to the previous week? At $4 she is getting an additional 2 servings which again according to the chart would then only be a surplus of 3 extra chicken nuggets. Which is a decrease of 3 nuggets.
c. One week later, they return to the restaurant again. Nina discovers that the restaurant is offering an “all-you-can-eat” special for $12. How many chicken nugget servings will Braden eat, and how much consumer surplus does he receive now?
Hypothetically, if it’ an all you can eat for a set price of $12, then Nina is paying $12 for an infinite amount of servings Braden will consume.
d. Suppose you own the restaurant and Braden is a “typical” …show more content…
* Completed the chart by providing the combined (total) demand schedule at the various levels given for problem 1b. * Determined the new price based on the supply schedule and combined U.S. and European demand schedule given for problem 1c. * Determined the price that will be paid by European consumers for problem 1d. * Determined the quantity consumed by European consumers for problem 1e. | 12 |
At $3 she is getting an additional 3 servings, which is a surplus of 6 additional chicken nuggets. (if the chicken nuggets graph, is the individual number of nuggets, making a serving. For example: 1 serving = 1 extra chicken nugget)
b. The following week, Nina and Braden are back at the restaurant again, but now the price of a serving of chicken nuggets is $4. By how much does his consumer surplus decrease compared to the previous week? At $4 she is getting an additional 2 servings which again according to the chart would then only be a surplus of 3 extra chicken nuggets. Which is a decrease of 3 nuggets.
c. One week later, they return to the restaurant again. Nina discovers that the restaurant is offering an “all-you-can-eat” special for $12. How many chicken nugget servings will Braden eat, and how much consumer surplus does he receive now?
Hypothetically, if it’ an all you can eat for a set price of $12, then Nina is paying $12 for an infinite amount of servings Braden will consume.
d. Suppose you own the restaurant and Braden is a “typical” …show more content…
* Completed the chart by providing the combined (total) demand schedule at the various levels given for problem 1b. * Determined the new price based on the supply schedule and combined U.S. and European demand schedule given for problem 1c. * Determined the price that will be paid by European consumers for problem 1d. * Determined the quantity consumed by European consumers for problem 1e. | 12 |