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.
Quantity of Tickets
Consumed
Total
Utility
Marginal
Utility
Movie Ticket
Price
Marginal Utility
Per Dollar for Movie Tickets
0
0
---
---
---
200
150
150
$10.00
15
400
275
125
$10.00
12.5
10
600
375
100
$10.00
800
450
75
$10.00
7.5
50
5
1,000
500
$10.00
25
2.5
1,200
525
$10.00
1,400
525
0
$10.00
0
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
$15.00
800
375
$15.00
1,200
525
$15.00
1,600
650
$15.00
2,000
750
$15.00
2,400
825
$15.00
2,800
875
$15.00
Part 1 Question 1: What quantity combination of movie tickets and concession stand items would maximize utility?
Your Answers:
Quantity of Movie Tickets
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:
Movie Ticket Price
Concession Stand Items Average Price
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
0.0520
600
375
0.5
$12.00
0.0416
800
450
0.375
$12.00
0.0312
1,000
500
0.25
$12.00
0.0208
1,200
525
0.125
$12.00
0.0104
1,400
525
0
$12.00
0
(Continue on next page)
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
$15.00
800
375
$15.00
1,200
525
$15.00
1,600
650
$15.00
2,000
750
$15.00
2,400
825
$15.00
2,800
875
$15.00
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?
Your Answers:
Quantity of Movie Tickets
Quantity of Concession Stand Items
Part 2 Question 2: What is the price of movie tickets?
Your Answer:
Movie Ticket Price
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
$10.00
400
275
$10.00
600
375
$10.00
800
450
$10.00
1,000
500
$10.00
1,200
525
$10.00
1,400
525
$10.00
(Continue on next page)
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
$20.00
800
375
$20.00
1,200
525
$20.00
1,600
650
$20.00
2,000
750
$20.00
2,400
825
$20.00
2,800
875
$20.00
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?
Your Answers:
Quantity of Movie Tickets
Quantity of Concession Stand Items
Part 3 Question 2: What is the average price concession stand items?
Your Answer:
Concession Stand Items Average Price
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
Part 2: Question 1 and Question 2
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.
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
Part 2: Question 1 and Question 2
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.
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