Economics Homework Four Answers - Student Six

Shanna

1\. A consumers overall satisfaction is expressed in economics as his Total Utility.

Excellent. (fixed misspelling)

2\. If you buy the car for $9000 then your consumer surplus would be $1000. Consumer Surplus is the benift we obtain from a good or service. For example, I was willing to pay $10000 for the car, but since the dealer was willing to sell for $9000, my consumer surplus was $1000.

Correct. Spelling: "benefit".

3\. In order to maximize my utility, I would hike for the first 2 hours, I would then read for the next 2 hours, and then go back and hike for 1 more hour. By doing this I would be maximizing my utility at 34 units. By hiking for the first 2 hours, I gain 10 units the first hour and 8 units the second hour. Then I go and read for two hours gaining 6 units the 1st hour of reading and 5 units the second hour of reading. When I was done reading, I could go back and hike one more hour gaining 5 more units for a total of 34.

Superb, may use as a model.

4\. I would tell the dealer there is no way I am paying full price for the car because it is worth less as it is now a used car, regardless of the amount of time it was used. When the dealer realizes that he cannot take advantage of my personal preference, he will sell it to me at a reduced price because it is still worth it to him.

Excellent.

5\. The shape is in a straight line because the value is the same. The person is willing to substitute one good for another on a one to one basis.

Good.

6\. The income effect is the wealth that you gain or lose when the price of an item changes. For example, if hamburger is on sale for $.99 per pound vs $1.99 a pound, the efrfec is that I am gaining $1 and will purchase more hamburger as a result.

Superb, but what is "efrfec"? Will use your answer as a model.

7\. I think charity come first. It is the basis of a successful free market. Charity is tied into the moral strength of an ecconomy or nation. It drives free enterprise. People are willing to help other with time and money during hard times which helps keep the ecconomy running.

"economy", one "c". Excellent answer.

69/70. Superb answers but minus 1 for the repeated misspellings. Congratulations on the high score!--Andy Schlafly 13:45, 11 October 2009 (EDT)