On Thursday nights, a local restaurant has a pasta special. Ari likes the restau

Question

On Thursday nights, a local restaurant has a pasta special. Ari likes the restaurant’s pasta. His willingness to pay for each serving is shown below:

Qty. of pasta (servings) || Willingness to pay (per serving)

1 || $10
2 || $8
3 || $6
4 || $4
5 || $2
6 || $0

How much consumer surplus does he receive?

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?

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?

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?

My thanks and help with this will be much appreciated.

Explanation / Answer

I ALREADY UPLOADED THE SOLUTIONS TO THESE PROBLEMS SINCE ME AND MY GROUP WORKED ON IT, YOU'LL FIND THE QUESTION ON PAGE 6:
http://faculty.pepperdine.edu/jburke2/ba210/PowerP1/Set4Answers.pdf

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