Chapter 2 Pre and Post Class

As part of a student work program, you intern at a marketing company who has been hired to do market research for Samsung. One of your tasks is to survey fellow students on what they would be willing to pay for a mid-tier smartphone. You are able to survey five students today, and the results are shown in the table.

Which students should purchase a smartphone if the price is $325?

Anthony and Amanda

As part of a student work program, you intern at a marketing company who has been hired to do market research for Samsung. One of your tasks is to survey fellow students on what they would be willing to pay for a mid-tier smartphone. You are able to survey five students today, and the results are shown in the table.

Which students should purchase a smartphone if the price is $325?

None of the Above

You just took an Uber from home to campus for the first time and were willing to pay $13 for the trip. It was so much easier than driving that you are willing to pay $21 for the same trip tomorrow.

Determine if you have violated the law of demand based on your choices, and why or why not that is the case.

Do not violate the law of demand because your preference for the product changed after you experienced the good.

Consider your current uses of tap water. Think about some of the ways that you use tap water that are beyond what is necessary to sustain life.

If the price of tap water triples, what are likely changes you will likely make to your consumption of tap water?

A) Decrease the length of your showers

B) Turn water off while brushing your teeth

C) Increase the length of your showers

D) Leave the water on while brushing your teeth

A,B

For most consumers, the iPhone is  ________ good.

a normal

For most consumers, a 10-year old car is _________ good.

an inferior

For most consumers, dental services are ___________ good.

a normal

When the PS5 was released it was reported that they were experiencing a loss of $60 on every console. However, they expected to make up this loss by with the sales of PS+ Subscriptions and increased royalties from video games. Use the Interdependence Principle to help explain this strategy.

The PS+ subscriptions allow PS5 owners to play their games online, receive new games monthly, to download at no charge, and receive additional special discounts on other items. Therefore, PS5 and PS+ subscriptions are __________ in consumption. Decreasing the price of the PS5 will ____________ the demand for PS+ Subscriptions. Sony expects tat