Apply Your Understanding Of The Previous Key Terms

Apply Your Understanding Of The Previous Key Terms By Completing The F

Apply your understanding of the previous key terms by completing the following scenario with the appropriate terminology. Your professor claims that one of the curves found on the following graph correctly illustrates the demand curve for CDs: Because you understand the law of demand, you can deduce that the correct graphical representation of the demand for CDs must be either ( D1 or D2 ). Moreover, you know that at a price of $10 per CD, the ( demand curve / quantity demanded / demand schedule ).

P.S: Choose the Answers from the Underlined options. Suppose that Van and Amy are the only consumers of pizza slices in a particular market. The following table shows their annual demand schedules: On the following graph, plot Van's demand for pizza slices using the green points (triangle symbol). Next, plot Amy's demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol). Note : Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.

Remember to plot from left to right. P.S : Don’t forget to Plot the Points!!! Before you started applying for college, a job recruiter offered you a full-time cashier position at a local retail store earning an after-tax salary of $30,000 per year. However, you turn down this offer and attend your first year of college. The additional monetary cost of college to you, including tuition, supplies, and additional housing expenses, is $39,000.

You decide to go to college, probably because (Select one of the options). A. You value a year of college at $39,000 B. You value a year of college at $ 30,000 C. You value a year of college less than $39,000 D. You value a year of college at more than $69,000

Solve for the missing boxes. If sandwiches were free, Teresa would choose to eat X sandwiches per week. What is X? Now (and for the rest of the question), assume that sandwiches cost $3 each. On the following graph, use the green points (triangle symbols) to plot Teresa's total utility if she buys 0, 1, 2, 3, 4, 5, or 6 sandwiches per week.

Then use the purple points (diamond symbols) to plot her total net utility (that is, total utility minus total expenditure) for those same quantities. Note : Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Remember to plot from left to right. Hint : Don’t forget to include what happens at 0 sandwiches!

Don’t forget to Plot the points!! The following graph shows Teresa's marginal utility (demand) curve. By comparing this graph with the previous one, you can see that Teresa's marginal utility curve crosses the horizontal axis (indicating a marginal utility of zero) at a quantity of X sandwiches per week, which is the quantity at which her ( Total Utility/ Total expenditure/ Total net utility) is maximized on the previous graph. Which of the Underlined choices is correct and solve for X?

Now use the black line (plus symbols) to draw a horizontal line at the price of $3. Teresa's marginal utility curve crosses this black line (price) line at a quantity of X sandwiches per week, which is the quantity at which her ( Total Utility/ Total expenditure/ Total net utility). Which of the Underlined choices is correct and solve for X? On the second graph, use the colored rectangles to shade the consumer’s surplus (CS) Teresa receives from each of the sandwiches she chooses to buy at a price of $3. You can place up to four rectangles on the graph; if she buys fewer than four sandwiches, don't add the rectangles that correspond to the sandwiches she doesn't buy. Show me the graph with the colored rectangles.

Paper For Above instruction

The scenario presented involves understanding fundamental economic concepts such as demand curves, consumer choice, marginal utility, consumer surplus, and opportunity cost. This analysis helps illuminate how individuals make decisions based on preferences, pricing, and resource constraints, which are core principles of microeconomics.

Firstly, identifying the correct demand curve among the options presented (D1 or D2) relies on the law of demand, which states that, ceteris paribus, there is an inverse relationship between price and quantity demanded. The demand curve that correctly depicts this relationship should slope downward, indicating that higher prices lead to lower quantities demanded. Thus, through the principle of demand, the demand curve is either D1 or D2, with D1 typically representing the conventional downward-sloping demand curve. At a price of $10 per CD, the term that accurately describes the point on the demand schedule is the "quantity demanded" or the "demand schedule," which indicates how many CDs consumers are willing and able to buy at that price.

Moving to the scenario involving Van and Amy, their individual demand schedules determine the market demand when aggregated. Plotting their demand on a graph with specific symbols (triangle for Van, diamond for Amy, and circle for market demand) visualizes how each consumer's preferences contribute to overall market dynamics. This exercise demonstrates the importance of individual preferences in shaping market demand curves, which generally slope downward due to diminishing marginal utility.

In the context of cost analysis, the decision to attend college prior to accepting a job offer involves evaluating opportunity costs. The opportunity cost of attending college includes the foregone salary of $30,000 (if accepting the retail job) and the additional costs of $39,000 for tuition, supplies, and housing. The decision hinges on how the individual values the benefits of higher education relative to these costs. If the person perceives the value of a year of college greater than the total cost ($69,000), then attending college is economically justified; otherwise, it might be less beneficial.

Regarding Teresa's consumption of sandwiches, the initial scenario where sandwiches are free establishes her maximum possible consumption, which we denote as X. When Sandwiches cost $3 each, Teresa's total utility and net utility change depending on the number of sandwiches purchased. Plotting total utility and total net utility points helps visualize her satisfaction and the consumer surplus at different quantities. The point where her total utility reaches its maximum indicates the optimal consumption level where marginal utility equals the price, which is a core concept in consumer theory.

By comparing Teresa's marginal utility curve with the price line, we identify the quantity where her marginal utility equals the price ($3). This equilibrium point indicates the optimal number of sandwiches she should buy to maximize her utility. The consumer surplus—the difference between what consumers are willing to pay and what they actually pay—is represented graphically by shaded rectangles between the demand curve (marginal utility curve) and the price line at each relevant quantity.

The comprehensive analysis of these scenarios underscores how microeconomic principles such as demand, utility maximization, opportunity cost, and consumer surplus interplay in individual decision-making. Mastery of these concepts provides critical insights into economic behavior and market outcomes, making them essential tools for understanding real-world economic phenomena.

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