In a one-pizza-per-semester world our consumer might save the one pizza for a celebration after final exams. If she were allowed to purchase 2 pizzas each semester perhaps she would also have one after mid-terms. Would she be willing to pay as much for the second pizza as for the first? In a two-pizza world is each pizza worth as much as the one in a one-pizza world? For most consumers the answer would be "no." While the second pizza would still be quite a treat, it might not be quite the treat one is, when only one can be purchased.

    For our consumer, if she is already able to buy one pizza, her marginal willingness to pay (the most she would pay for one more) for pizza is less for her second than her first. In this case, our consumer would be willing to pay $33 for the second pizza in a semester.

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