Kaplan AB224 unit 3-4 assignment

Insert your answers below, or in the appropriate space provided for in the question. Your answers should follow the APA format with citations to your sources and, at the bottom of your last page, a list of references. Your answers should also be in Standard English with correct spelling, punctuation, grammar, and style (double spaced, in Times New Roman, 12-point, black font). Respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions.

Provide a list of references at the end of the last page of your assignment.

------------------------------------------- Career Competencies -----------------------------------------

In this assignment, you will engage in developing the following career competencies:

Analyzing Quantitative Data

Analyzing Qualitative Data

Improving Global Awareness

------------------------------------------- Assignment -------------------------------------------

1. St Atanagio is a remote island in the Atlantic. The inhabitants grow corn and breed poultry. The accompanying table shows the maximum annual output combinations of corn and poultry that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources for corn production, there are fewer resources available for breeding poultry.

Maximum annual output options	Quantity of Corn (pounds)	Quantity of Poultry (pounds)
1	1200	0
2	1000	300
3	800	500
4	600	600
5	400	700
6	200	775
7	0	850

Examine the following production possibility frontier graph with corn on the horizontal axis and poultry on the vertical axis illustrating these options and showing points 1–7.

a. Can St. Atanagio produce 650 pounds of poultry and 650 pounds of corn? Explain. Where would this point lie relative to the production possibility frontier?

b. What is the opportunity cost of increasing the annual output of corn from 800 to 1000 pounds?

c. What is the opportunity cost of increasing the annual output of corn from 200 to 400 pounds?

d. Can you explain why the answers to parts b. and c. above are not the same? What does this imply about the slope of the production possibility frontier?

2.Suppose that the supply schedule of Belgium Cocoa beans is as follows:

Price of cocoa beans (per pound)	Quantity of cocoa beans supplied (pounds)
$40	900
$35	700
$30	500
$25	400
$20	200

Suppose that Belgium cocoa beans can be sold only in Europe. The European demand schedule for Belgium cocoa beans is as follows:

Price of Belgium cocoa beans (per pound)	European Quantity of Belgium cocoa beans demanded (pounds)
$40	100
$35	300
$30	500
$25	700
$20	900

a. Below is the graph of the demand curve and the supply curve for Belgium cocoa beans. From the supply and demand schedules above, what are the equilibrium price and quantity of cocoa beans from Belgium?

Now suppose that Belgium cocoa beans can be sold in the U.S. The U.S. demand schedule for Belgium cocoa beans is as follows:

Price of Belgium cocoa beans (per pound)	U.S. Quantity of Belgium cocoa beans demanded (pounds)
$40	200
$35	400
$30	600
$25	800
$20	1000

b. What is the combined (total) demand schedule for Belgian cocoa beans that European and USA consumers buy?

Price of Belgium cocoa beans	U.S. Quantity of Belgium cocoa beans demanded	European Quantity of Belgium cocoa beans demanded	Total Demanded
(per pound)	(pounds)	(pounds)	(pounds)
$40	200	100
$35	400	300
$30	600	500
$25	800	700
$20	1000	900

Below is the supply and demand graph that illustrates the new equilibrium price and quantity of cocoa beans from Belgium.

c. From the supply schedule and the combined U.S. and European demand schedule, what will be the new price at which Belgium plantation owners can sell cocoa beans?

d. What price will be paid by European consumers?

e. What will be the quantity consumed by European consumers?

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References:

Unit _3_ PERFORM Assignment Grading Rubric
Content	Percent Possible	Points Possible
Full assignment	100%	80
Overall Writing:	20%	16
correct coversheet information at the top of 1st page	5%	4
APA format for answers	3%	2
correct citations	3%	2
standard English no errors	4%	3
At least ONE, or more, references	5%	4
Answers: provides complete information demonstrating analysis and critical thinking:	80%	64
Individual Questions:
1. a. - Can this quantity be produced, where does point lie?	7%	6
1. b. - What is Opportunity cost from 800 to 1,000?	7%	6
1. c. - What is opportunity cost from 200 to 400?	7%	6
1. d. - Why are c & d not the same, what shape of curve?	10%	8
2. a. - What is equilibrium quantity and price?	7%	6
2. b. - What is new demand schedule?	7%	6
2. c. - What is new price?	5%	4
2. d. - What price will Europeans pay?	5%	4
2. e. - What quantity will Europeans buy?	5%	4
3. a. - How many servings @ $3, what consumer surplus?	5%	4
3. b. - How many servings @ $4, What new consumer surplus?	5%	4
3. c. - Servings @ $12 "all-you-can-eat", surplus?	5%	4
3. d. - What is highest price for "all-you-can-eat"?	5%	4

AB224 Unit 4 Assignment Template:

Insert your answers below, or in the appropriate space provided for in the question. Your answers should follow the APA format with citations to your sources and, at the bottom of your last page, a list of references. Your answers should also be in Standard English with correct spelling, punctuation, grammar, and style (double spaced, in Times New Roman, 12-point, black font). Respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions.

Provide a list of references at the end of the last page of your assignment.

------------------------------------------- Career Competencies -----------------------------------------

In this assignment, you will engage in developing the following career competencies:

Analyzing Quantitative Data

Analyzing Qualitative Data

------------------------------------------- Assignment -------------------------------------------

1. For each of the following situations, decide whether the bundle Lakshani is considering optimal or not. If it is not optimal, how could Lakshani improve her overall level of utility? That is, determine which good she should spend more on and which good should she spend less on.

a.Lakshani has $200 to spend on sneakers and sweaters. Sneakers cost $50 per pair, and sweaters cost $20 each. She is thinking about buying 2 pairs of sneakers and 5 sweaters. She tells her friend that the additional utility she would get from the second pair of sneakers is the same as the additional utility she would get from the fifth sweater.

b.Lakshani has $5 to spend on pens and pencils. Each pen costs $0.50 and each pencil costs $0.10. She is thinking about buying 6 pens and 20 pencils. The last pen would add five times as much to her total utility as the last pencil.

c.Lakshani has $50 per season to spend on tickets to football games and tickets to soccer games. Each football ticket costs $10 and each soccer ticket costs $5. She is thinking about buying 3 football tickets and 2 soccer tickets. Her marginal utility from the third football ticket is twice as much as her marginal utility from the second soccer ticket.

2.In the United States, 2007 was a bad year for growing wheat. And as wheat supply decreased, the price of wheat rose dramatically, leading to a lower quantity demanded (a movement along the demand curve). The accompanying table describes what happened to prices and the quantity of wheat demanded.

	2006	2007
Quantity demand (bushels)	2.2 billion	2.0 billion
Average price (per bushel)	$3.42	$4.26

a.Using the midpoint method, calculate the price elasticity of demand for winter wheat.

b.What is the total revenue for U.S. wheat farmers in 2006 and 2007?

c.Did the bad harvest increase or decrease the total revenue of U.S. wheat farmers? How could you have predicted this from your answer to part a?

3. A recent study determined the following elasticities for Volkswagen Beetles:

Price elasticity of demand = 2

Income elasticity of demand = 1.5

The supply of Beetles is elastic. Based on this information, are the following statements true or false? Explain your reasoning.

a.A 10% increase in the price of a Beetle will reduce the quantity demanded by 20%.

b.An increase in consumer income will increase the price and quantity of Beetles sold. Since price elasticity of demand is greater than 1, total revenue will go down.

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References:

Unit _4_ Practice Assignment Grading Rubric
Content	Percent Possible	Points Possible
Full assignment	100%	40
Overall Writing:	20%	8
correct coversheet information at the top of 1st page	5%	2
APA format for answers	3%	1
correct citations	3%	1
standard English no errors	4%	2
At least ONE, or more, references	5%	2
Answers: provides complete information demonstrating analysis and critical thinking:	80%	32
Individual Questions:
1. a. - Is it the best choice or should buy more of which good and less of which good (Sneakers/Sweaters)?	7%	3
1. b. - Is it the best choice or should buy more of which good and less of which good (pens/pencils)?	6%	2
1. c. - Is it the best choice or should buy more of which good and less of which good (football/soccer tickets)?	7%	3
2. a. - What is price elasticity of demand for wheat?	10%	4
2. b. - What is total revenue for wheat?	10%	4
2. c. - Could change in revenue been predicted from elasticity? How?	15%	6
3. a. - Supply of beetles is elastic. (true/false) Why?	10%	4
3.b. - Will total revenue increase, or decrease??	15%	6