,ECS2601 Assignment 1 (COMPLETE ANSWERS)
Semester 1 2025 (655050) - DUE 2 April 2025;
100% TRUSTED Complete, trusted solutions and
explanations.
Multiple choice,assured excellence
QUESTION 1 In microeconomics, several factors influence
consumer decision-making. Discuss five key factors that impact
consumer choices. QUESTION 2. Shooting Star Books is a small
publishing company that specializes in science fiction books.
Like most publishers, Shooting Star releases new books in hard-
cover form and later releases paper-back versions of the books.
The marginal cost of printing both types of books is R2 per.
QUESTION 3. Internet service in the local market is supplied by
Lauraʹs Internet Service. The demand is QD = 6,500 - 100P ⇔ P
= 65 - 0.01Q. Lauraʹs marginal cost function is MC(Q) = 6.67 +
0.0067Q If Laura practices first-degree price discrimination,
what are consumer surplus and Lauraʹs producer surplus in this
market? Does Lauraʹs market power and first-degree price
discrimination result in reduced societal welfare? book, and
Shooting Star maximizes profits by practicing intertemporal
price discrimination. The annual demand for recently released
(hard-cover) books is Q1 = 400 — 10P1 where quantity
demanded is measured in thousands of books and price is
measured in dollars per book. The annual demand for the
paper-back version of previously released books is Q2 = 800 —
40P2. a. What are the marginal revenue curves associated with
, the two demand curves for books? b. What are the profit
maximizing prices for hard-cover and paper-back books? What
are the quantities of books demanded at these prices for hard-
cover and paper-back books? c. Suppose the market demand
for paper-back books shifts to Q2 = 150 — 100P2. How does
this change affect the profit maximizing price and quantity in
the paper-back book market? Does this change affect the profit
maximizing outcome in the hard-cover book market?
Introduction
Microeconomics examines how individuals and firms make
decisions regarding resource allocation, production, and
consumption. Consumer choices are influenced by various
factors, including price, income, preferences, and market
conditions. Businesses, in turn, use different pricing strategies
to maximize their profits, such as price discrimination and
demand-based pricing models. This document explores five key
factors that influence consumer choices, analyzes intertemporal
price discrimination in the book publishing industry, and
evaluates the impact of first-degree price discrimination in an
internet service market.
Question 1: Five Key Factors Influencing Consumer Choices
Semester 1 2025 (655050) - DUE 2 April 2025;
100% TRUSTED Complete, trusted solutions and
explanations.
Multiple choice,assured excellence
QUESTION 1 In microeconomics, several factors influence
consumer decision-making. Discuss five key factors that impact
consumer choices. QUESTION 2. Shooting Star Books is a small
publishing company that specializes in science fiction books.
Like most publishers, Shooting Star releases new books in hard-
cover form and later releases paper-back versions of the books.
The marginal cost of printing both types of books is R2 per.
QUESTION 3. Internet service in the local market is supplied by
Lauraʹs Internet Service. The demand is QD = 6,500 - 100P ⇔ P
= 65 - 0.01Q. Lauraʹs marginal cost function is MC(Q) = 6.67 +
0.0067Q If Laura practices first-degree price discrimination,
what are consumer surplus and Lauraʹs producer surplus in this
market? Does Lauraʹs market power and first-degree price
discrimination result in reduced societal welfare? book, and
Shooting Star maximizes profits by practicing intertemporal
price discrimination. The annual demand for recently released
(hard-cover) books is Q1 = 400 — 10P1 where quantity
demanded is measured in thousands of books and price is
measured in dollars per book. The annual demand for the
paper-back version of previously released books is Q2 = 800 —
40P2. a. What are the marginal revenue curves associated with
, the two demand curves for books? b. What are the profit
maximizing prices for hard-cover and paper-back books? What
are the quantities of books demanded at these prices for hard-
cover and paper-back books? c. Suppose the market demand
for paper-back books shifts to Q2 = 150 — 100P2. How does
this change affect the profit maximizing price and quantity in
the paper-back book market? Does this change affect the profit
maximizing outcome in the hard-cover book market?
Introduction
Microeconomics examines how individuals and firms make
decisions regarding resource allocation, production, and
consumption. Consumer choices are influenced by various
factors, including price, income, preferences, and market
conditions. Businesses, in turn, use different pricing strategies
to maximize their profits, such as price discrimination and
demand-based pricing models. This document explores five key
factors that influence consumer choices, analyzes intertemporal
price discrimination in the book publishing industry, and
evaluates the impact of first-degree price discrimination in an
internet service market.
Question 1: Five Key Factors Influencing Consumer Choices
