2. Individual Problems 142 A local Pilates studio recently began offering a monthly subscription service for its patrons. Suppose a particular patron at this studio has the following willingnessto-pay schedule, per session. Session Willingness to Pay lst $7? 2nd $66 3rd $55 4th $44 5th $33 6th $22 Suppose this consumer would not demand any more sessions, even forfree. Also assume that the marginal cost to the studio, per session, is constant at $11. At a price of $?1.50 per session, the number of sessions demanded by this consumer would be S . At this price and quantity, consumer surplus is and producer surplus is 5 Suppose the studio 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 $237.60 and can have up to 6 sessions total. Using this subscription pricing model, this consumer would demand V sessions. Under this scenario, consumer surplus is E and producer surplus is . (Hint: For consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)