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Business, 20.08.2020 18:01 meandmycousinmagic

Suppose this consumer would not demand any more sessions, even for free. Also assume that the marginal cost to the brothel, per session, is constant at $10. At a price of $65.00 per session, the number of sessions demanded by this consumer would be . At this price and quantity, consumer surplus is $ and producer surplus is $ . Suppose the brothel has devised a new pricing scheme for consumers who demand more than 1 session. This pricing scheme is a subscription service, whereby consumers can pay a flat fee of $216.00 and can have up to 6 sessions total. Using this subscription pricing model, this consumer would demand sessions. Under this scenario, consumer surplus is $ and producer surplus is $ . (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)

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