Microeconomics week 4

1 original post+ 2 replies

One of the student leaning outcomes designed for this course asks you to "Apply microeconomic frameworks, theories, and concepts to analyze one’s choices in a market economy and then reflect on how those choices interact with the experiences of others in society."

To do this, this board is broken up in two parts: 

In the first part, think of a recent purchase you made for yourself or family member where you enjoyed a large consumer surplus... because you valued the good a lot more than what you paid for it, you may have felt like you made a tremendous 'deal'. What were your feelings then? OR, have you ever purchased something at an unusually high price?  Why were you willing to pay such a high price for the item? Describe your transaction as a story, and include any details that highlight your overall market transaction experience.

Then, as a second part of the DB2 assignment, read this article and see how people change their WTP depending on changing individual goals and circumstances and how companies can use measurements of willingness to pay to determine how to price their product, in this case, subscription to a meditation app. Please discuss what you can take away from this article.