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Assignment 3 - Question and Answer Sheet

This document provides instructions for Assignment 3 for the Microeconomics course ECON EB122. The assignment asks students to [1] demonstrate their understanding of how utility theory affects consumer choices by answering 4 questions, [2] review content from Day 5, [3] graph a budget constraint using Excel, and [4] submit their answers by the due date of Day 7 for 4% of their total grade. The questions provide a scenario about a consumer's budget and utility for Oreo cookies and KitKats to answer questions about the budget constraint, marginal utility, and utility maximizing choice.

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Gurleen KR
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93 views2 pages

Assignment 3 - Question and Answer Sheet

This document provides instructions for Assignment 3 for the Microeconomics course ECON EB122. The assignment asks students to [1] demonstrate their understanding of how utility theory affects consumer choices by answering 4 questions, [2] review content from Day 5, [3] graph a budget constraint using Excel, and [4] submit their answers by the due date of Day 7 for 4% of their total grade. The questions provide a scenario about a consumer's budget and utility for Oreo cookies and KitKats to answer questions about the budget constraint, marginal utility, and utility maximizing choice.

Uploaded by

Gurleen KR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment

Course Code: ECON EB122


Course Name: Microeconomics
Assignment: Assignment 3

Assignment Description
This is an individual assignment. You will demonstrate your understanding of how utility theory affects
consumers in allocating their scarce resources.
This assignment is worth 4% of your total grade and is due on Day 7.

Assignment Steps
To complete this assignment:
1. Review the rubric for this assignment.
2. Review content learned on Day 5.
3. Review “Practice - Graphing a Linear Equation using Excel”.
4. Download “Assignment 3 - Question and Answer Sheet.docx” and answer the 4 questions
included.
5. Type your answers in the answer sheet using the Equation Editor (if any).
6. Perform calculations in Excel and copy them to the Answer Sheet (if any).
7. Proofread all your answers.
8. Submit the answer sheet to the Assignment 3 Submission Folder.
9. Submit the answer sheet to the Assignment 1 Submission Folder.

Questions
Suppose that Olivia has $29 per week to spend on snacks—Oreo cookies and KitKat chocolate bars.
A box of Oreo cookies costs $3.5.
A KitKat chocolate bar costs $3.0.
Total Utility Table for Oreo cookies and KitKat chocolate bars as below.

Count Oreo Cookies KitKat Chocolate Bars

1 59 43

2 106 75

3 135 98

4 149 117

5 162 129

ECON EB122_Assignment 3 Version 2 Page 1 of 2


6 164 139

7 164 147

Question 1
Graph the Budget Constraint with Oreo cookies on the horizontal axis and KitKat chocolate bars on the
vertical axis. Demonstrate the Budget Constraint as an equation.
Insert your answer here.

Question 2
Calculate Olivia’s Marginal utils for Oreo cookie consumption and KitKat chocolate bar consumption.
Insert your answer here.

Question 3
Calculate Olivia’s Marginal utils per $ for Oreo cookie consumption and KitKat chocolate bar
consumption.
Insert your answer here.

Question 4
Use the utility maximizing rule to identify the consumer equilibrium. What combination of Oreo cookies
and KitKat chocolate bars will maximize Olivia’s total utility?
Insert your answer here.

ECON EB122_Assignment 3 Version 2 Page 2 of 2

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