Unit VII Final Project

Running head: Unit II Assignment 1

Microeconomics

Charles Bunn

Unit II Assignment

March 7, 2021

Economics 2

Unit II Assignment Worksheet

This worksheet is intended to help you develop the information you will use to complete your Unit

II Assignment.

Completing only this worksheet does not constitute completion of the Unit II Assignment.

You need to complete all parts of the assignment, which also include writing an essay about

the information you obtain in this worksheet. You will copy and paste your essay at the end

of this document where indicated, and then upload your assignment via SafeAssign.

Instructions:

1. Complete the Unit II Worksheet.

2. Use your Unit II Worksheet responses to help you formulate your ideas for writing your

essay; you are expected to expand on these questions when writing your essay.

3. Include your graphs in the areas indicated in this worksheet.

4. Copy and paste your essay in to this worksheet, then upload the entire assignment via

SafeAssign.

Part 1

Given the quantity of total movie tickets and total concession stand items consumed in a month

and the total utility derived at Ruby Red Movie Theater for each, calculate the marginal utility and

the marginal utility per dollar for movie tickets and average concession stand items.

Step 1: Calculate marginal utility and marginal utility per dollar for movie tickets.

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Quantity of

Tickets

Consumed

Total

Utility

Marginal

Utility

Movie Ticket

Price

Marginal Utility

Per Dollar for

Movie Tickets

0 0 --- --- ---

200 150 0.75 $10.00 0.075

400 275 0.65 $10.00 0.065

600 375 0.5 $10.00 0.05

800 450 0.35 $10.00 0.035

1,000 500 0.25 $10.00 0.025

1,200 525 0.125 $10.00 0.0125

1,400 525 0 $10.00 0

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Step 2: Calculate marginal utility and marginal utility per dollar for concession stand items.

Quantity of

Concession

Stand Items

Consumed

Total

Utility

Marginal

Utility

Average Item

Price

Marginal Utility

Per Dollar for

Concession Items

0 0 --- --- ---

400 200 0.5 $15.00 0.0333

800 375 0.438 $15.00 0.0292

1,200 525 0.375 $15.00 0.025

1,600 650 0.313 $15.00 0.021

2,000 750 0.25 $15.00 0.0167

2,400 825 0.188 $15.00 0.0125

2,800 875 0.125 $15.00 0.0083

Part 1 Question 1: What quantity combination of movie tickets and concession stand items

would maximize utility?

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Your Answers:

25 Quantity of Movie Tickets

200 Quantity of Concession Stand Items

Part 1 Question 2: What is the price of movie tickets and average price of concession stand

items?

Your Answers:

$15 Movie Ticket Price

$15 Concession Stand Items Average Price

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Part 2

Given the quantity of total movie tickets and total concession stand items consumed in a month

and the total utility derived at Ruby Red Movie Theater for the change in movie ticket prices,

calculate the marginal utility and the marginal utility per dollar for movie tickets and concession

stand items.

Step 1: Calculate marginal utility and marginal utility per dollar for movie tickets.

Quantity of

Tickets

Consumed

Total

Utility

Marginal

Utility

Movie Ticket

Price

Marginal Utility

Per Dollar for

Movie Tickets

0 0 --- --- ---

200 150 0.75 $12.00 0.0625

400 275 0.625 $12.00 0.0521

600 375 0.5 $12.00 0.0417

800 450 0.375 $12.00 0.0313

1,000 500 0.25 $12.00 0.0208

1,200 525 0.125 $12.00 0.0104

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1,400 525 0 $12.00 0

(Continue on next page)

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Step 2: Calculate marginal utility and marginal utility per dollar for concession stand items.

(Note: The information here has not changed from Part 1, Step 2.)

Quantity of

Concession

Stand Items

Consumed

Total

Utility

Marginal

Utility

Average Item

Price

Marginal Utility

Per Dollar for

Concession

Items

0 0 --- --- ---

400 200 0.5 $15.00 0.0333

800 375 0.438 $15.00 0.0292

1,200 525 0.375 $15.00 0.025

1,600 650 0.313 $15.00 0.021

2,000 750 0.25 $15.00 0.0167

2,400 825 0.188 $15.00 0.0125

2,800 875 0.125 $15.00 0.0083

Part 2 Question 1: What quantity combination of movie tickets and concession stand items would

maximize utility now that the price of movie tickets has changed?

Economics 9

Your Answers:

200 Quantity of Movie Tickets

25 Quantity of Concession Stand Items

Part 2 Question 2: What is the price of movie tickets?

Your Answer:

$15 Movie Ticket Price

Economics 10

Part 3

Given the total quantity of movie tickets and total concession stand items consumed in a month

and the total utility derived at Ruby Red Movie Theater for the change in concession stand prices,

calculate the marginal utility and the marginal utility per dollar for movie tickets and concession

stand items.

Step 1: Calculate marginal utility and marginal utility per dollar for movie tickets. (Note: The

information here is the same as in Part 1, Step 1.)

Quantity of

Tickets

Consumed

Total

Utility

Marginal

Utility

Movie Ticket

Price

Marginal Utility

Per Dollar for

Movie Tickets

0 0 --- --- ---

200 150 0.75 $10.00 0.075

400 275 0.65 $10.00 0.065

600 375 0.5 $10.00 0.05

800 450 0.35 $10.00 0.035

1,000 500 0.25 $10.00 0.025

1,200 525 0.125 $10.00 0.0125

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1,400 525 0 $10.00 0

(Continue on next page)

Economics 12

Step 2: Calculate marginal utility and marginal utility per dollar for concession stand items.

Quantity of

Concession

Stand Items

Consumed

Total

Utility

Marginal

Utility

Average Item

Price

Marginal Utility

Per Dollar for

Concession

Items

0 0 --- --- ---

400 200 0.5 $20.00 0.025

800 375 0.438 $20.00 0.0219

1,200 525 0.375 $20.00 0.0185

1,600 650 0.313 $20.00 0.0157

2,000 750 0.25 $20.00 0.0125

2,400 825 0.188 $20.00 0.0094

2,800 875 0.125 $20.00 0.00625

Part 3 Question 1: What quantity combination of movie tickets and concession stand items would

maximize utility now that the average price of concession items has changed?

Economics 13

Your Answers:

200 Quantity of Movie Tickets

25 Quantity of Concession Stand Items

Part 3 Question 2: What is the average price concession stand items?

Your Answer:

$20 Concession Stand Items Average Price

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Part 4

Answer the following from the calculations you made above:

Step 1: In regard to movie tickets, report the price and quantity you calculated in Questions 1 and

2 from Parts 1 and 2.

Movie Tickets

Price Quantity

Part 1: Question 1 and Question 2 $10 200

Part 2: Question 1 and Question 2 $12 200

Task: Graph the demand curve for movie tickets from the information above. Provide a copy of

your graph in the box below. You can use a computer program such as Microsoft Excel or even

draw the demand curve for movie tickets by hand, then take a clear, easy-to-read photo of it and

insert it. Be sure to resize your graph or photo so that it completely fits in the box.

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Step 2: In regard to concession stand items, report the price and quantity you calculated in

Questions 1 and 2 from Parts 1 and 2.

Concession Stand Items

Average Price Quantity

Part 1: Question 1 and Question 2 $15 200

Part 2: Question 1 and Question 2 $15 20

Task: Graph the demand curve for concession stand items from the information above. Provide a

copy of your graph in the area below. You can use a computer program such as Microsoft Excel or

even draw the demand curve for concession stand items by hand, then take a clear, easy-to-read

photo of it and insert it. Be sure to resize your graph or photo so that it completely fits in the box.

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Part 5

Given the price and quantity information below, graph the supply curve for movie tickets and

concession stand items on separate graphs.

Step 1: Graph the supply of movie tickets given the prices and quantities supplied below.

Movie Ticket Prices and Quantity Supplied

Movie Ticket

Price

Quantity

Supplied of

Movie Tickets

$2 1,800

$3 1,800

$4 1,800

$5 1,800

$6 1,800

$7 1,800

$8 1,800

$9 1,800

$10 1,800

$11 1,800

$12 1,800

$13 1,800

$14 1,800

$15 1,800

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Insert graph here: To create your graph, you can use a computer program such as Microsoft

Excel or even draw the demand curve for movie tickets by hand, then take a clear, easy-to-

read photo of it and insert it. Be sure to resize your graph or photo so that it completely fits in the

box.

Part 5 Question 1: Why is the quantity supplied of movie tickets the same regardless of the price

of movie tickets? Enter your response in the box below.

The supply has been constant because the products were still bought by the consumers as much

as the price kept changing. Step 2: Graph the supply of concession stand items given the prices and quantities supplied below.

Concession Stand Item Prices and Quantity Supplied

Average

Concession

Stand Price

Quantity Supplied of

Concession Stand Items

$1 500

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$2 700

$3 900

$4 1,100

$5 1,300

$6 1,500

$7 1,700

$8 1,900

$9 2,100

$10 2,300

$11 2,500

$12 2,700

$13 2,900

Draw or insert graph here: (Make sure your graph fits entirely in the box.)

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Part 6

Graph the supply and demand for movie tickets and concession stand items.

Step 1: Graph the supply and demand for movie tickets on one graph.

Draw or insert graph here: (Make sure your graph fits entirely in the box.)

Step 2: Estimate the equilibrium price and quantity for movie tickets:

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Equilibrium Price: _____N/A________________

Equilibrium Quantity: ____N/A____________________

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Step 3: Graph the supply and demand for concession stand items on one graph.

Draw or insert graph here: (Make sure your graph fits entirely in the box.)

Step 4: Estimate the equilibrium price and quantity for concession stand items:

Equilibrium Price: ______N/A_____________________

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Equilibrium Quantity: _____N/A___________________

Continue on next page. You will start your essay there, beginning with a title page that

provides the title of the paper, your name, university name, course name, instructor name,

and the date.

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(Insert entire essay here—title page, essay, and references. Be sure to delete this comment.)