Sample problems

Use the following information to answer all of the questions.

Ahmad goes to a sushi place to have dinner. He has not eaten all day and feels very hungry. How much
he values each portion of sushi is given in the table below.

# of portion WTP
1 $25
2 $19
3 $13
4 $5
5 $0
6 ($4)

Ahmad prefers to have sushi along with green tea. He thinks that they are a match made in heaven. He
values each cup of green tea as the following:

# of cup WTP
1 $7
2 $4
3 $1
4 $0
5 ($4)

Only one option exist

1. If the price per portion of sushi is $10, while each cup of green tea is $4, how many portions of sushi
and cups of green tea should Ahmad get?
2. If the price per portion of sushi is $10, while each cup of green tea is $4, how much gain would
Ahmad end up with if he is being rational? ($30)
3. If Ahmad decides to eat 2 portions of sushi and 2 cups of green tea, how much gain would he end up
with?

Two options are available

There are two available options at the sushi place; buy per portion or all-you-can-eat option. Ahmad can
either pay $10 per portion of sushi or pay $25 for the AYCE option. The AYCE option is only for sushi and
does not include the green tea.

1. If Ahmed decides on the AYCE option, how many portions of sushi and cups of green tea should he
get?
2. Which one is the better option for Ahmad?
3. What should the price for AYCE option be for Ahmad to be indifferent between the 2 options? ($35)

Two options are available, but modified

1
There are two available options at the sushi place; buy per portion or all-you-can-eat option. Ahmad can
either pay $10 per portion of sushi and $4 per cup of green tea or pay $40 for the AYCE option that
includes free flow of green tea.

1. If Ahmed decides on the AYCE option, how many portions of sushi and cups of green tea should he
get?
2. Which one is the better option for Ahmad? (AYCE)
3. What should the price for AYCE option be for Ahmad to be indifferent between the 2 options?