Principles of Microeconomics - Eco 2002 - Chapter 5 - Survey A SURVEY OF THE PRICE ELASTICITY OF DEMAND You will analyze the price elasticity of demand for a list of selected food items that most of us use in our daily lives through a classroom survey and analysis. This activity will be two weeks long, with specific tasks designed for Week 6 (part 1 - survey) and Week 7 (part 2 - discussion). PART 1 - SURVEY (WEEK 6): You will fill out a survey to generate the price and quantity data for your class. PART 2 - DISCUSSION (WEEK 7): You will calculate the price elasticity for one of the ten products listed based on the data collected. You will then analyze the impact of a price change on the expected revenue of that product based on your calculated demand elasticity and interact with your peers through the discussion forum. WHY ARE WE DOING THIS? This activity will help you connect the theoretical concepts of the price elasticity of demand to real-life applications. You will learn to analyze field data to find the price elasticity of demand and explore the connection between the price elasticity and revenue using survey data - a hands-on application! PART 1: Survey and Data Collection You will complete the survey this week. Please fill out the survey below and submit your completed survey by Thursday, September 28, 11:59 PM. Please download the document - (available in the Assignment folder) and after completing the survey, upload it in the Assignment folder - "A survey of the price elasticity of demand." Here is the list of the products to be used in this survey: Breakfast cereal (1 lb box) Coffee (a 12-ounce cup of hot coffee - the kind you purchase at a coffee shop) Restaurant meal for the family (not fast food) A pack of soda (12 pack cans) Eggs (1 dozen) Milk (1 gallon) Fresh tomatoes Pasta (1 lb bag uncooked) Citrus fruits (A 3 lb bag of oranges) Ice-cream (common flavors 1 pint) Instructions for the Survey: There are two sets of prices for each product. Please fill out tables (blank spaces) with the quantity of each product you are willing to buy at each price level. For example, if the price of a 1lb box of cereal is $3 per box, how many such boxes are you (your household) going to buy in a month? What would happen if the price of the box of cereals increases to $6 per box? Will you still buy the same number of cereal boxes at a higher price? A few things to keep in mind: The product quality does not change, your household income does not change, your tastes and preferences do not change, the number of people in your household does not change, and the price of all other goods and services is constant. The only change for each product is the price of the product. State your MONTHLY DEMAND - the amount you buy/willing to buy in a month. I am looking for HOUSEHOLD DEMAND -you will report the monthly consumption data for your representative household. For the purpose of this study, a household is defined as a group of people sharing the same accommodation - family, roommates etc. Even if you do not buy that product, chances are someone in your household does. You are expected to complete the survey for all ten products. As you complete the survey - remember the Law of Demand, which states that the quantity demanded of a product is inversely proportional to the price of the product - in other words, as the price of the product increases, you are willing (and able) to buy less of it. 1. Breakfast Cereals Price per box of cereal (1 lb) Your Household Quantity (monthly) $3.00 $6.00 2. Coffee Price per cup of coffee (12 fl oz) Your Household Quantity (monthly) $2.50 $5.00 3. Restaurant Dinner (for the family/household) Price per family meal Your Household Quantity (monthly) $60 $120 4. A pack of soda Price per pack of soda (12 cans) Your Household Quantity (monthly) $4.50 $9.00 5. Eggs Price per pack of eggs (A dozen eggs) Your Household Quantity (monthly) $3.00 $6.00 6. Milk Price per carton of milk (1 gallon) Your Household Quantity (monthly) $3.50 $7.00 7. Fresh tomatoes Price per lb of tomatoes Your Household Quantity (monthly) $3.00 $6.00 8. Pasta Price per lb of uncooked pasta Your Household Quantity (monthly) $2.50 $5.00 9. Citrus fruits Price per bag of oranges (3 lb) Your Household Quantity (monthly) $3.00 $6.00 10. Ice-cream (non-bulk) Price per carton of ice cream (16 oz/1 pint) Your Household Quantity (monthly) $4.00 $8.00 GRADING: This is a survey and you will receive 40 points if you complete the survey and submit it by the due date. Each food item is worth 4 points, and the total is 104 = 40 points. You will receive no points if you fail to complete the survey and upload your completed document in the "A survey of the price elasticity of demand," by the due date. Please download this document. Complete the tables for each product. Once you have completed this survey, upload the document (mention your name) in the assignment folder "A survey of the price elasticity of demand