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On Tuesday nights, a local restaurant has a kid's meal special. Nina's son, Braden likes the restaurant's chicken nuggets, but Braden seems to be growing bigger every day and the kid's meal is usually not enough. The restaurant does allow for additional purchase of chicken nugget servings. Nina's willingness to pay for each serving is shown in the table below. Number of Chicken Nugget servings (servings) Willingness to pay for chicken nuggets (per serving) 1 $5 2 $4 3 $3 4 $2 5 $1 6 $0 If the price of an additional serving of chicken nuggets is $3, how many servings will Nina buy for Braden? How much consumer surplus does he receive? 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? 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? Suppose you own the restaurant and Braden is a "typical" customer. What is the highest price you can charge for the "all-you-can-eat" special and still attract customers?
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