# General Instructions for all Assignments, writing homework help

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 and Section, and the Date

3.
Insert your answers below, or in the appropriate space provided for in the
also be in Standard English with correct spelling, punctuation, grammar, and
style (double spaced, in Times New Roman, 12–point, and 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.
Upload the completed Assignment to the appropriate Dropbox.

5. Any
questions about the Assignment, or format questions, should be directed to your
course instructor.

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:

AB224-5: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

1. Using
the midpoint method (show your work), calculate the price elasticity of
demand when the price of barrel of gosum berries rises from \$10 to \$20.
What does this estimate imply about the price elasticity of demand of
gosum berries?
1. Using
the midpoint method (show your work), calculate the price elasticity of
demand when the price of barrel of gosum berries rises from \$70 to \$80.
What does this estimate imply about the price elasticity of demand of
gosum berries?

1. Notice that the estimates from (a) and (b) above are
different. Why do price elasticity of demand estimates change along the
demand curve?

music and videos from an online site. She is currently buying three music
table below indicates what she reports as the marginal utility of the last

As an
assignment for her Microeconomics course, Matilda used the marginal utilities
that she gave to her 3rd music download and her 2nd video

1. A consumer
maximizes utility when the last dollar spent on any good generates the same
satisfaction as the last dollar spent on every other good. Is Matilda

2. Should
Matilda consume one more video download, to move her closer to her optimum

3. Should
Matilda consume one less music

4. Should
Matilda consume one more music download, to move her closer to her optimum

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

a. If the
price of the price of each movie rental from Xanadu is \$3, how many movie
rentals will Brandon buy and how much consumer surplus does Brandon receive? Explain

b. If
the price of the price of each movie rental from Xanadu is \$5, how many movie
rentals will Brandon buy and how much consumer surplus does Brandon receive? Explain

c. If
the Xanadu online service offers as many movie rentals as the customer wants to
download, all for on-time yearly subscription fee of \$25.00, how many movie

d. If
the Xanadu online service offers as many movie rentals as the customer wants to
download, all for on-time yearly subscription fee of \$35.00, how many movie