BU224-01 UNIT 5 ASSIGNMENT ELASTICITY OF DEMAND - KAPLAN
Kaplan BU224-01 Unit 5 Assignment Elasticity of Demand
Assignment
In this Assignment, you will calculate the Price Elasticity of Demand, demonstrate a firm understanding of consumer choices based on differing marginal utilities, consumer surplus, and how the buying choice and amount of consumer surplus changes based on various pricing schemes.
In this Assignment, you will be assessed on the following outcome:
BU224-5: Demonstrate how the concept of utility affects purchasing decisions by individuals and consumer surplus.
Questions
1. The accompanying table shows the price and monthly demand for barrels of gosum berries in Gondwanaland.
Price of gosum berries per barrel
|
Native Demand for gosum berries per month
|
$100
|
0
|
$90
|
100
|
$80
|
200
|
$70
|
300
|
$60
|
400
|
$50
|
500
|
$40
|
600
|
$30
|
700
|
$20
|
800
|
$10
|
900
|
$0
|
1000
|
2. Matilda is downloading music and videos from an online site. She is currently buying three music downloads that cost $3 each and two video downloads that also cost $3 each. The table below indicates what she reports as the marginal utility of the last music download and of the last video download in this combination of purchases.
Quantity
|
Price per Download
|
MU per download
| |
Music downloads
|
3
|
$3
|
60
|
Video downloads
|
2
|
$3
|
45
|
3. Brandon and his family often rent movies from the new internet movie streaming service, Xanadu. The table below shows Brandon’s demand schedule for eight movie rentals that Brandon’s family is interested in watching.
Number of internet video rentals
|
Willingness to pay each rental
|
1st movie rental
|
$7
|
2nd movie rental
|
$6
|
3rd movie rental
|
$5
|
4th movie rental
|
$4
|
5th movie rental
|
$3
|
6th movie rental
|
$2
|
7th movie rental
|
$1
|
8th movie rental
|
$0
|
4. Newspaper vending machines are designed so that once you have paid for one paper; you have access to all the papers in the machine and could take multiple papers at a time. However, other vending machines dispense only one item (the item you bought). You do not have access to all the goods (sodas, candy, snacks, etc.) at one time. Using the concept of marginal utility, explain why these vending machines differ?
No comments:
Post a Comment