Microeconomics assignments
Subject: Economics / Microeconomics
Question
1. The true value placed on a product or service is the value assigned by each individual. The consumer surplus is the difference between this value and the actual price paid for that product or service.
Almost everyone has an item they put a higher value on than the price warrants. They would rather pay a premium than to do without. The consumer surplus on these items is high. What items do you cherish the most? Why are you willing to pay more? Explain.
Need 300 words
2. You are reviewing your monthly budget and determine you have $60.00 to spend on either books or movies each month. (Remember you must have whole numbers, not fractions) The books cost $8.00 and the movies cost $20.00. Put this into equation form.
Save your time!
- Proper editing and formatting
- Free revision, title page, and bibliography
- Flexible prices and money-back guarantee
Complete the following Total Utilities table.
Books
Total Utility
Quantity
Marginal Utility
Marginal Utility Per $
50
1
80
2
100
3
110
4
Movies
Total Utility
Quantity
Marginal Utility
Marginal Utility Per $
22
1
42
2
52
3
57
4
Using the equation created above, solve to locate four points and plot them on a budget constraint line. Create the graph in Excel and paste onto your Word document answering the questions below. Review the tutorial on creating graphs in Week 01 if you run into any problems.
Write a one page response answering the following questions about your graph and tables:
How many books and movies would maximize your level of satisfaction given the budget of $60.00?
Are the charts above consistent with the Law of Diminishing Marginal Utility? Why or Why not?
What is the consumer surplus of purchasing three books?
If you were able to go to the matinee for movies at a price of $10.00 instead, how would this change the amount of books and movies you could purchase?