Assignment:
Identify a food product or other agriculturally-related good that is very popular or unpopular (demand shifts left) right now and fits the concept of changing "Tastes & Preferences". Use your own experiences but do some research to back up your assumptions. Include your source(s) of information as a URL so I can check it out if needed. (You need at least 1 source.) Your discussion should be in the range of 250-300 words.
A 80 70 60 50 Total utility 40 30 20 10 T 1 T 2 0 3 4 9 10 11 12 13 5 6 7 8 Quantity of hamburgers B 12 10 - 8 6 - 4 Marginal utility 2 0 -2 -4 - -6 0 T T T 1 T 2 T 4 T 10 3 11 12 13 5 6 7 8 9 Quantity of hamburgers Figure 3-1 Total utility continues to increase as the number of hamburgers consumed increases, at least up to 11 hamburgers. At this point, total utility is maximized. Beyond 11 hamburgers, total util- ity decreases (A). Marginal utility declines as Sue increases her consumption of hamburgers (B). Modern consumption theory dismisses the notion that utility is cardinally mea- surable and instead measures utility in ordinal terms. All we really need to know is that bundle N is preferred to bundle M, not by how much. The indifference curve or isoutility curve represents Concept of Isoutility the combination of The basic building block of modern consumption theory is the notion of an isoutility consumption bundles that curve, which accounts for substitution in consumption for two products. The term provide a consumer a given level of satisfaction. The iso is of Greek origin and means "equal."2 An isoutility curve often is referred to as an slope of the indifference indifference curve. A consumer is indifferent to consumption bundles that yield an curve is the marginal rate of equal level of satisfaction or utility. substitution. For example, consider an isosceles triangle, a triangle with two equal sides. Another economic factor that is interesting is how consumer's "Tastes and preferences" can affect the overall demand for a good, actually causing a "shift" in demand or a "change in quantity demanded" (Page 64). So what are changing "Tastes and Preferences"? These are demand changes caused by consumers attitudes towards various types of goods. I will give you an example but you cannot use it in your discussion as one of your examples. My Example: Domestic Almond Consumption. About 36% of the annual almond crop is consumed in the USA. According to the Almond Board of CA, the domestic (in USA) consumption of almonds has risen by about 20% per year since 2012. Almonds are touted as being "Heart Healthy"; almond consumption actually lowers "bad" cholesterol (Almond Almanac, 2018). Almonds are viewed as being a healthy snack. Because of these facts, almond demand is up even though retail prices for almonds have actually risen, showing a classic "shift in demand". A 80 70 60 50 Total utility 40 30 20 10 T 1 T 2 0 3 4 9 10 11 12 13 5 6 7 8 Quantity of hamburgers B 12 10 - 8 6 - 4 Marginal utility 2 0 -2 -4 - -6 0 T T T 1 T 2 T 4 T 10 3 11 12 13 5 6 7 8 9 Quantity of hamburgers Figure 3-1 Total utility continues to increase as the number of hamburgers consumed increases, at least up to 11 hamburgers. At this point, total utility is maximized. Beyond 11 hamburgers, total util- ity decreases (A). Marginal utility declines as Sue increases her consumption of hamburgers (B). Modern consumption theory dismisses the notion that utility is cardinally mea- surable and instead measures utility in ordinal terms. All we really need to know is that bundle N is preferred to bundle M, not by how much. The indifference curve or isoutility curve represents Concept of Isoutility the combination of The basic building block of modern consumption theory is the notion of an isoutility consumption bundles that curve, which accounts for substitution in consumption for two products. The term provide a consumer a given level of satisfaction. The iso is of Greek origin and means "equal."2 An isoutility curve often is referred to as an slope of the indifference indifference curve. A consumer is indifferent to consumption bundles that yield an curve is the marginal rate of equal level of satisfaction or utility. substitution. For example, consider an isosceles triangle, a triangle with two equal sides. Another economic factor that is interesting is how consumer's "Tastes and preferences" can affect the overall demand for a good, actually causing a "shift" in demand or a "change in quantity demanded" (Page 64). So what are changing "Tastes and Preferences"? These are demand changes caused by consumers attitudes towards various types of goods. I will give you an example but you cannot use it in your discussion as one of your examples. My Example: Domestic Almond Consumption. About 36% of the annual almond crop is consumed in the USA. According to the Almond Board of CA, the domestic (in USA) consumption of almonds has risen by about 20% per year since 2012. Almonds are touted as being "Heart Healthy"; almond consumption actually lowers "bad" cholesterol (Almond Almanac, 2018). Almonds are viewed as being a healthy snack. Because of these facts, almond demand is up even though retail prices for almonds have actually risen, showing a classic "shift in demand
