1. Individual Problems 14-1
Suppose Mattel, the producer of Barbie dolls and accessories (sold separately), has two types of
consumers who purchase its dolls: low-value consumers and high-value consumers. Each of the low-
value consumers tends to purchase one doll and one accessory, with a total willingness to pay of $68.
Each of the high-value consumers buys one doll and two accessories and is willing to pay $130 in total.
Mattel is currently considering two pricing strategies:
Strategy 1: Sell each doll for $34 and each accessory for $34
Strategy 2: Sell each doll for $6 and each accessory for $62
In the following table, indicate the revenue for a low-value and a high-value customer under strategy 1
and strategy 2. Then, assuming each strategy is applied to one low-value and one high-value
customer, indicate the total revenue for each strategy.
Revenue from Low-
Revenue from High-
$68 Value, 1
$130 Value, 2
$34 doll + $34
$6 doll + $62
2. Individual Problems 14-2
A local Pilates studio recently began offering a monthly subscription service for its patrons.
Suppose a particular patron at this studio has the following willingness-to-pay schedule, per session.
Willingness to Pay