Josie's individual monthly demand for Keurig K-Cups is given by P= 10 -0.2Q (or Q...
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Josie's individual monthly demand for Keurig K-Cups is given by P= 10 -0.2Q (or Q = 50-5P) where is the price in S and Q is the number of K-cups. Keurig currently charges $1 per K-Cup. They are considering a new plan where the consumer pays a monthly fixed fee of $200 and can consume an unlimited number of K-cups at no additional per-cup price. What is Josie's consumer surplus (CS) under the current plan, and what would it be under the new plan? OCS current plan = $202.5: CS new plan = $0. OCS current plan = $202.5; CS new plan = $250. CS current plan = $405: CS new plan = $50. O CS current plan = $202.5; CS new plan = $50
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