4. On Thursday nights, Hacienda Pizza Co. has a pasta special. Jacob likes the restaurant's pasta,and his willingness to pay for each serving is shown in the accompanying table:Willingness to pay for pasta (perserving)$10Quantity of Pasta (servings)1$83$64$4$26.$Oa. If the price of a serving of pasta is $5, how many servings will Jacob buy? How muchconsumer surplus does he receive?b. The following week, Jacob is back, but now the price of a serving is $6. By how much does hisconsumer decrease compared to the first 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 Jacob eat, and how much consumersurplus does he receive now?d. Suppose you own Hacienda Pizza Co and Jacob is a "typical" customer. What is the highestprice you can charge for the “all you can eať" special and still attract customers?

The equilbrium price and quantity of a good sold in the market are determined by the forces of…

Answered: 4. On Thursday nights, Hacienda Pizza…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 5SQP

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