BUS 640 Week 2 Consumer Demand Analysis and Estimation Applied Problems

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February 18th, 2022

This work of BUS 640 Week 2 Consumer Demand Analysis and Estimation Applied Problems consists of:

Please, complete the following 3 applied problems in a Word or Excel document. Show all your calculations and explain your results. Submit your assignment in the drop box by using the Assignment Submission button.

Problem 1

a. Which of the two options should Roshima pursue of she wants to keep her full-time job? (Calculate the total expected utility from each school option and compare. Graph is not required)

b. Which of the two options should she pick if she plans to quit her job and dedicate to her studies?

c. Which option should she pursue if the probability of being laid off and unable to find a new job is estimated as 0.6? Show your calculations and explain your reasoning.

Problem 2

a. Calculate the price elasticity of demand for Einstein

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