Ab224: microeconomics unit 4 assignment revised

AB224 KULogoUnit 4 Assignment Template:

Name:                       

Course Number:    

Section Number:   

Unit Number:           – 4

Date:                                    

 

———————————- General Instructions for all Assignments———————————–

1. Unless specified differently by your course instructor, save this assignment template to your computer with the following file naming format:

Course number_section number_LAST_FIRST_ unit number

 

2.  At the top of the template, insert the appropriate information: Your Name, Course Number, Section Number and Date

 

3. Insert your answers below, or in the appropriate space provided for in the question.  Your answers should follow the APA format with citations to your sources and, at the bottom of your last page, a list of references. Your answers should also be in Standard English with correct spelling, punctuation, grammar, and style (double spaced, in Times New Roman, 12-point, black font).  Respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions.

 

4.  Provide a list of references at the end of the last page of your assignment.

 

5. Upload the completed assignment to the appropriate dropbox.

 

6. Any questions about the assignment, or format questions, should be directed to your course instructor.

——————————————- Career Competencies —————————————–

 

In this assignment, you will engage in developing the following career competencies:

 

Analyzing Quantitative Data

Analyzing Qualitative Data

 

——————————————-     Assignment          ——————————————-

 

1. For each of the following situations, decide whether the bundle Lakshani is considering optimal or not. If it is not optimal, how could Lakshani improve her overall level of utility? That is, determine which good she should spend more on and which good should she spend less on. (Things to consider: Budget line and marginal utility per dollar.)

 

a. Lakshani has $200 to spend on sneakers and sweaters. Sneakers cost $50 per pair, and sweaters cost $20 each. She is thinking about buying 2 pairs of sneakers and 5 sweaters. She tells her friend that the additional utility she would get from the second pair of sneakers is the same as the additional utility she would get from the fifth sweater.  (For this question, you have to consider MU/$.  So, choose a number to represent MU.  The problem states that the utility for the 2nd pair of sneakers is the same as the utility for the 5th sweater.  Assign a random number to represent the MU and determine what the MU/$ would be. This will enable you to determine if it is optimal or not.)

 

 

 

b. Lakshani has $5 to spend on pens and pencils. Each pen costs $0.50 and each pencil costs $0.10. She is thinking about buying 6 pens and 20 pencils. The last pen would add five times as much to her total utility as the last pencil.

 

c. Lakshani has $50 per season to spend on tickets to football games and tickets to soccer games. Each football ticket costs $10 and each soccer ticket costs $5. She is thinking about buying 3 football tickets and 2 soccer tickets. Her marginal utility from the third football ticket is twice as much as her marginal utility from the second soccer ticket.

 

 

2. In the United States, 2007 was a bad year for growing wheat. As the wheat supply decreased, the price of wheat rose dramatically, leading to a lower quantity demanded (a movement along the demand curve). The accompanying table describes what happened to prices and the quantity of wheat demanded.

 

 

2006

2007

Quantity demand (bushels)

2.2 billion

2.0 billion

Average price (per bushel)

$3.42

$4.26

 

 

a. Using the midpoint method, calculate the price elasticity of demand for winter wheat. (I’ve provided an example for you below.)

 

 

 

b. What is the total revenue for U.S. wheat farmers in 2006 and 2007? (For each year.)

 

 

c. Did the bad harvest increase or decrease the total revenue of U.S. wheat farmers?  How could you have predicted this from your answer to part a?

 

 

3. A recent study determined the following elasticities for Volkswagen Beetles:

 

Price elasticity of demand = 2

Income elasticity of demand = 1.5

 

The supply of Beetles is elastic. Based on this information, are the following statements true or false? Explain your reasoning.

 

a. A 10% increase in the price of a Beetle will reduce the quantity demanded by 20%.

 

 

b. An increase in consumer income will increase the price and quantity of Beetles sold. Since price elasticity of demand is greater than 1, total revenue will go down.  (Please address both statements for part b.  They may both be false, both be true, or one true and one false.)

 

 

——————————————–

References:

 

 

 

Unit  _4_  Practice Assignment Grading Rubric

 

 

 

Content

Percent Possible

Points Possible

Full assignment

100%

40

 

 

 

Overall Writing:

20%

8

correct coversheet information at the top of 1st page

 

2

APA format for answers

 

1

correct citations

 

1

standard English no errors

 

2

At least ONE, or more, references

 

2

 

 

 

Answers:  provides complete information demonstrating analysis and critical thinking:

80%

32

Individual Questions:

 

 

1. a. – Is it the best choice or should buy more of which good and less of which good (Sneakers/Sweaters)?

 

3

1. b. – Is it the best choice or should buy more of which good and less of which good (pens/pencils)?

 

2

1. c. – Is it the best choice or should buy more of which good and less of which good (football/soccer tickets)?

 

3

2. a. – What is price elasticity of demand for wheat?

 

4

2. b. – What is total revenue for wheat?

 

4

2. c. – Could change in revenue been predicted from elasticity?  How?

 

6

3. a. – Supply of beetles is elastic. (true/false) Why?

 

4

3.b. – Will total revenue increase, or decrease??

 

6

 

Duepapers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.