Economic growth in the country of southville has slowed down in the last few months. following a collapse in housing prices, several homeowners have defaulted on their mortgages. given that this sector accounts for a sizeable portion of the gdp, many commentators believe that this will prompt a 'domino effect' in the economy. on a tv chat show, three industry experts are discussing the crisis and its possible impacts. megan greenboe is of the opinion that housing prices were driven up by speculation prior to the crisis. according to her, this crisis will eventually reduce liquidity in the economy and lead to a credit crunch. bob sacberg, however, does not agree with megan. bob feels that the increase in housing prices can be explained by the steady growth in population and were therefore driven by fundamentals. samantha morris meanwhile is not very convinced that the housing sector is solely responsible for the economic slowdown. she argues that a twelve percent fall in housing prices is unlikely to have a very widespread impact. which of the following, if true, will weaken bob's argument that fundamental factors in the housing market led to the increase in housing prices?

German brothels recently began offering a monthly subscription service for multiple purchasers. if you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral? suppose a particular patron at a german brothel has the following willingness-to-pay schedule for services at the brothel, per session. session willingness to pay 1st $84 2nd $72 3rd $60 4th $48 5th $36 6th $24 suppose this consumer would not demand any more sessions, even for free. also assume that the marginal cost to the brothel, per session, is constant at $12. at a price of $78.00 per session, the number of sessions demanded by this consumer would be . at this price and quantity, consumer surplus is $ and producer surplus is $ . suppose the brothel 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 $259.20 and can have up to 6 sessions total. using this subscription pricing model, this consumer would demand sessions. under this scenario, consumer surplus is $ and producer surplus is $ . (hint: for consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)