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Kaplan Bu224 week 5 assignment




Question;aaUnit 5 Assignment Template;Name: -;Course Number: -;Section Number: -;Unit Number: - 5;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.;The accompanying table shows the price and yearly quantity sold of ice cream;cones on Sidfield Island.;Price of Ice Cream Cones;Quantity of Ice Cream;Cones Demanded;$1;3000;$2;2400;$3;1600;$4;800;Using the midpoint method (show;your work), calculate the price elasticity of demand when the price of an;ice cream cone rises from $1 to $2.;What does this estimate imply about the price elasticity of demand;for ice cream cones?;Using the midpoint method (show;your work), calculate the price elasticity of demand when the price of an;ice cream cone rises from $3 to $4.;What does this estimate imply about the price elasticity of demand;for ice cream cones?;Notice;thatthe;estimates from (a) and (b) above are different. Why do price elasticity of demand;estimates change along the demand curve?;2.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?;3.Amy is;shopping at a dollar store. She is;currently buying 5 bracelets that cost $1 each and 4 sodas that cost $1 each. The table below indicates the marginal;utility she obtains when she purchases this combination.;Quantity;Price per Unit;MU per unit;Bracelets;5;$1;30;Sodas;4;$1;40;a. 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 this consumer maximizing her utility?;b. If not;should she consume more bracelets or more sodas? Explain.;Answer the;following assuming that one more bracelet is purchased and one less soda is;consumed;c.;Recall the law of diminishing marginal utility. What happens to the Marginal Utility of;bracelets and the Marginal Utility of soda?;d.;What happens to the Total Utility received?;e.;What happens to the total dollars spent?;4. On Tuesday;nights, a local restaurant has a kid?s meal special. Nina?s son, Braden likes;the restaurant?s chicken nuggets, but Braden seems to be growing bigger every;day and the kid?s meal is usually not enough. The restaurant does allow for;additional purchase of chicken nugget servings. Nina?s willingness to pay for;each serving is shown in the table below.;Number of Chicken Nugget;servings;(servings);Willingness to pay for;chicken nuggets;(per serving);1;$5;2;$4;3;$3;4;$2;5;$1;6;$0;a.;If the price of an additional serving of;chicken nuggets is $3, how many servings will Nina buy for Braden? How much;consumer surplus does he receive?;b.The following;week, Nina and Braden are back at the restaurant again, but now the price of a;serving of chicken nuggets is $4. By how much does his consumer surplus;decrease compared to the previous week?;c.One week later;they return to the restaurant again. Nina discovers that the restaurant is;offering an ?all-you-can-eat? special for $12. How many chicken nugget servings;will Braden eat, and how much consumer surplus does he receive now?;d.Suppose you own;the restaurant and Braden is a ?typical? customer. What is the highest price;you can charge for the ?all-you-can-eat? special and still attract customers?;--------------------------------------------;References;Unit _5;PERFORM Assignment Grading Rubric;Content;Percent Possible;Points Possible;Full assignment;100%;80;Overall Writing;20%;16;correct coversheet information at the top of 1st page;5%;4;APA format for answers;3%;2;correct citations;3%;2;standard English no errors;4%;3;At least ONE, or more, references;5%;4;Answers: provides complete information demonstrating;analysis and critical thinking;80%;64;Individual Questions;1. a. - Calculate;price elasticity of demand ($1-$2), what is meaning?;10%;8;1. b. - Calculate;price elasticity of demand ($3-$4), what is meaning?;10%;8;1. c. - Why are a;b different, what different about the demand curve between these;prices?;10%;8;2. a. - What is;differences between newspaper and snack vending machines (considering;utility)?;15%;12;3. a. - Is Amy;maximizing utility?;7%;6;3.b. - Explain if;either more sodas, or more bracelets?;7%;6;3. c. - If 1 more;bracelet & 1 less soda, what happens to marginal utility of each?;8%;6;3.d. - If 1 more;bracelet & 1 less soda, what happens to total utility?;8%;6;3. e. - If 1 more;bracelet & 1 less soda, what happens to total dollars spent?;5%;4


Paper#55572 | Written in 18-Jul-2015

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