Assignment

“Elasticity of Demand and Supply”

• Select a product you use on a daily basis and discuss the determinants of price elasticity of demand for that product. Provide specific examples of characteristics of your chosen good to support your response.
• For the same product just discussed, determine what other types of elasticity (of either demand or supply, such as income elasticity of demand) could impact your decision to continue purchasing that product. Explain your rationale.

“Consumer Choice and Demand”

• Provide an example of an economic activity that exhibits diminishing marginal utility. Provide at least two reasons why one would experience diminishing marginal utility for your example.
• (very) brief, original scenario using two to three products of your choice that illustrates how consumer choice affects the demand of a product.