5.) Talk about 5 items that you purchase, or would purchase, that have different elasticities. Explain what elasticity each item has and why you purchase, or would purchase them, anyway. You will need to be specific with your choices; i.e. not just food in general but some specific food item, not just water but tap water or bottled water or flavored water, etc.
6.) Two very important concepts mentioned in this chapter are budget constraints and the allocation of income to maximize utility. These are problems that all of us face on a continuing basis. For example, we may be hungry for pizza so we go to a pizza parlor and have pizza. Maximum utility. But then one of our friends calls and want to go for pizza so we go again for pizza. We still allocate income but the utility is less. So is it worth it? Discuss here times when you have experienced a situation as I described above (maybe not with pizza). Be sure to discuss the situation(s) and the utility involved. Include your budget constraints and how you most often intend to allocate your income resources with those constraints. And, of course, include the actual "interferences" to your budget goals.
5.) Talk about 5 items that you purchase, or would purchase, that have different elasticities. Explain what elasticity each item has and why you purchase, or would purchase them, anyway. You will need to be specific with your choices; i.e. not just food in general but some specific food item, not just water but tap water or bottled water or flavored water, etc.
6.) Two very important concepts mentioned in this chapter are budget constraints and the allocation of income to maximize utility. These are problems that all of us face on a continuing basis. For example, we may be hungry for pizza so we go to a pizza parlor and have pizza. Maximum utility. But then one of our friends calls and want to go for pizza so we go again for pizza. We still allocate income but the utility is less. So is it worth it? Discuss here times when you have experienced a situation as I described above (maybe not with pizza). Be sure to discuss the situation(s) and the utility involved. Include your budget constraints and how you most often intend to allocate your income resources with those constraints. And, of course, include the actual "interferences" to your budget goals.
