Kaplan Bu224 week 4 assignment

BU224.jpg” alt=”KULogo”>Unit 4 Assignment Template:
Name: –
Course Number: –
Section Number: –
Unit Number: – 4
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.
For each of the following situations, decide whether the bundle Lakshani is
considering optimal or not. If it is not optimal, how could Lakshani improve
her overall level of utility? That is, determine which good she should spend
more on and which good should she spend less on.

a.Lakshani
has $200 to spend on sneakers and sweaters. Sneakers cost $50 per pair, and
sweaters cost $20 each. She is thinking about buying 2 pairs of sneakers and 5
sweaters. She tells her friend that the additional utility she would get from
the second pair of sneakers is the same as the additional utility she would get
from the fifth sweater.

b.Lakshani
has $5 to spend on pens and pencils. Each pen costs $0.50 and each pencil costs
$0.10. She is thinking about buying 6 pens and 20 pencils. The last pen would
add five times as much to her total utility as the last pencil.

c.Lakshani
has $50 per season to spend on tickets to football games and tickets to soccer
games. Each football ticket costs $10 and each soccer ticket costs $5. She is
thinking about buying 3 football tickets and 2 soccer tickets. Her marginal
utility from the third football ticket is twice as much as her marginal utility
from the second soccer ticket.

2.In the United
States, 2007 was a bad year for growing wheat. And as wheat supply decreased,
the price of wheat rose dramatically, leading to a lower quantity demanded (a
movement along the demand curve). The accompanying table describes what
happened to prices and the quantity of wheat demanded.

2006

2007

Quantity
demand (bushels)

2.2 billion

2.0 billion

Average price
(per bushel)

$3.42

$4.26

a.Using
the midpoint method, calculate the price elasticity of demand for winter wheat.

b.What
is the total revenue for U.S. wheat farmers in 2006 and 2007?

c.Did
the bad harvest increase or decrease the total revenue of U.S. wheat
farmers? How could you have predicted
this from your answer to part a?

3. A recent
study determined the following elasticities for Volkswagen Beetles:

Price elasticity
of demand = 2
Income
elasticity of demand = 1.5

The supply of
Beetles is elastic. Based on this information, are the following statements
true or false? Explain your reasoning.

a.A 10%
increase in the price of a Beetle will reduce the quantity demanded by 20%.

b.An
increase in consumer income will increase the price and quantity of Beetles
sold. Since price elasticity of demand is greater than 1, total revenue will go
down.

——————————————–
References:

Unit _4_
Practice Assignment Grading Rubric

Content

Percent Possible

Points Possible

Full assignment

100%

40

Overall Writing:

20%

8

correct coversheet information at the top of 1st page

5%

2

APA format for answers

3%

1

correct citations

3%

1

standard English no errors

4%

2

At least ONE, or more, references

5%

2

Answers: provides complete information demonstrating
analysis and critical thinking:

80%

32

Individual Questions:

1. a. – Is it the best
choice or should buy more of which good and less of which good
(Sneakers/Sweaters)?

7%

3

1. b. – Is it the best
choice or should buy more of which good and less of which good
(pens/pencils)?

6%

2

1. c. – Is it the best
choice or should buy more of which good and less of which good
(football/soccer tickets)?

7%

3

2. a. – What is price
elasticity of demand for wheat?

10%

4

2. b. – What is total
revenue for wheat?

10%

4

2. c. – Could change
in revenue been predicted from elasticity?
How?

15%

6

3. a. – Supply of
beetles is elastic. (true/false) Why?

10%

4

3.b. – Will total
revenue increase, or decrease??

15%

6