Unit 5Assignment: Elasticity of Demand and Consumer Surplus
General Instructions for all Assignments
1. Unless specified differently by your course instructor, save this assignment template to your computer with the following file naming format: Course number_section number_Last_First_unit number
2. At the top of the template, insert the appropriate information: Your Name, Course Number and Section, and the Date
3. Insert your answers below, or in the appropriate space provided for in the question. Your answers should follow 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, and black font). Respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions.
4. Upload the completed Assignment to the appropriate Dropbox.
5. Any questions about the Assignment, or format questions, should be directed to your course instructor.
Assignment
In this Assignment, you will calculate the Price Elasticity of Demand, demonstrate a firm understanding of consumer choices based on differing marginal utilities, consumersurplus, and how the buying choice and amount of consumer surplus changes based on various pricing schemes.
In this Assignment, you will be assessed on the following outcome:
AB224-5:Demonstrate how the concept of utility affects purchasing decisions by individuals and consumer surplus.
Questions
1. The accompanying table shows the price and monthlydemand for barrels of gosum berries in Gondwanaland.
