KAPLAN BU224 UNIT 5 assignment

Unit 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