Posted: May 15th, 2023

Analysis of Utility, Demand, and Supply for Movie Tickets and

Unit II Assignment Worksheet

This worksheet is intended to help you develop the information you will use to complete your Unit II Assignment.

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Completing only this worksheet does not constitute completion of the Unit II Assignment. You need to complete all parts of the assignment, which also include writing an essay about the information you obtain in this worksheet. You will copy and paste your essay at the end of this document where indicated, and then upload your assignment via SafeAssign.

Instructions:
1. Complete the Unit II Worksheet.
2. Use your Unit II Worksheet responses to help you formulate your ideas for writing your essay; you are expected to expand on these questions when writing your essay.
3. Include your graphs in the areas indicated in this worksheet.
4. Copy and paste your essay in to this worksheet, then upload the entire assignment via SafeAssign.

Part 1
Given the quantity of total movie tickets and total concession stand items consumed in a month and the total utility derived at Ruby Red Movie Theater for each, calculate the marginal utility and the marginal utility per dollar for movie tickets and average concession stand items.

Step 1: Calculate marginal utility and marginal utility per dollar for movie tickets.

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Quantity of Tickets
Consumed Total
Utility Marginal
Utility Movie Ticket
Price Marginal Utility
Per Dollar for Movie Tickets
0 0 --- --- ---

200 150 $10.00

400 275 $10.00

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Step 2: Calculate marginal utility and marginal utility per dollar for concession stand items.
Quantity of Concession Stand Items
Consumed Total
Utility Marginal
Utility Average Item
Price Marginal Utility
Per Dollar for Concession Items
0 0 --- --- ---

400 200 $15.00

800 375 $15.00

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Part 1 Question 1: What quantity combination of movie tickets and concession stand items would maximize utility?

Your Answers:
Quantity of Movie Tickets
Quantity of Concession Stand Items

Part 1 Question 2: What is the price of movie tickets and average price of concession stand items?
Your Answers:
Movie Ticket Price
Concession Stand Items Average Price

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Part 2
Given the quantity of total movie tickets and total concession stand items consumed in a month and the total utility derived at Ruby Red Movie Theater for the change in movie ticket prices, calculate the marginal utility and the marginal utility per dollar for movie tickets and concession stand items.

Step 1: Calculate marginal utility and marginal utility per dollar for movie tickets.

Quantity of Tickets
Consumed Total
Utility Marginal
Utility Movie Ticket
Price Marginal Utility
Per Dollar for Movie Tickets
0 0 --- --- ---

200 150 $12.00

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(Continue on next page)
Step 2: Calculate marginal utility and marginal utility per dollar for concession stand items. (Note: The information here has not changed from Part 1, Step 2.)
Quantity of Concession Stand Items
Consumed Total
Utility Marginal
Utility Average Item
Price Marginal Utility
Per Dollar for Concession Items
0 0 --- --- ---

400 200 $15.00

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Part 2 Question 1: What quantity combination of movie tickets and concession stand items would maximize utility now that the price of movie tickets has changed?

Your Answers:
Quantity of Movie Tickets
Quantity of Concession Stand Items

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Part 2 Question 2: What is the price of movie tickets?
Your Answer:
Movie Ticket Price

Part 3
Given the total quantity of movie tickets and total concession stand items consumed in a month and the total utility derived at Ruby Red Movie Theater for the change in concession stand prices, calculate the marginal utility and the marginal utility per dollar for movie tickets and concession stand items.

Step 1: Calculate marginal utility and marginal utility per dollar for movie tickets. (Note: The information here is the same as in Part 1, Step 1.)
Quantity of Tickets
Consumed Total
Utility Marginal
Utility Movie Ticket
Price Marginal Utility
Per Dollar for Movie Tickets
0 0 --- --- ---

200 150 $10.00

400 275 $10.00

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(Continue on next page)
Step 2: Calculate marginal utility and marginal utility per dollar for concession stand items.
Quantity of Concession Stand Items
Consumed Total
Utility Marginal
Utility Average Item
Price Marginal Utility
Per Dollar for Concession Items
0 0 --- --- ---

400 200 $20.00

800 375 $20.00

1,200 525 $20.00

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Part 3 Question 1: What quantity combination of movie tickets and concession stand items would maximize utility now that the average price of concession items has changed?

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Your Answers:
Quantity of Movie Tickets
Quantity of Concession Stand Items

Part 3 Question 2: What is the average price concession stand items?
Your Answer:
Concession Stand Items Average Price

Part 4
Answer the following from the calculations you made above:

Step 1: In regard to movie tickets, report the price and quantity you calculated in Questions 1 and 2 from Parts 1 and 2.
Movie Tickets
Price Quantity
Part 1: Question 1 and Question 2
Part 2: Question 1 and Question 2

Task: Graph the demand curve for movie tickets from the information above. Provide a copy of your graph in the box below. You can use a computer program such as Microsoft Excel or even draw the demand curve for movie tickets by hand, then take a clear, easy-to-read photo of it and insert it. Be sure to resize your graph or photo so that it completely fits in the box.

Step 2: In regard to concession stand items, report the price and quantity you calculated in Questions 1 and 2 from Parts 1 and 2.
Concession Stand Items
Average Price Quantity
Part 1: Question 1 and Question 2
Part 2: Question 1 and Question 2

Task: Graph the demand curve for concession stand items from the information above. Provide a copy of your graph in the area below. You can use a computer program such as Microsoft Excel or even draw the demand curve for concession stand items by hand, then take a clear, easy-to-read photo of it and insert it. Be sure to resize your graph or photo so that it completely fits in the box.

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Part 5
Given the price and quantity information below, graph the supply curve for movie tickets and concession stand items on separate graphs.

Step 1: Graph the supply of movie tickets given the prices and quantities supplied below.

Movie Ticket Prices and Quantity Supplied
Movie Ticket Price Quantity Supplied of Movie Tickets
$2 1,800
$3 1,800
$4 1,800
$5 1,800
$6 1,800
$7 1,800
$8 1,800
$9 1,800
$10 1,800
$11 1,800
$12 1,800
$13 1,800
$14 1,800
$15 1,800

Insert graph here: To create your graph, you can use a computer program such as Microsoft Excel or even draw the demand curve for movie tickets by hand, then take a clear, easy-to-read photo of it and insert it. Be sure to resize your graph or photo so that it completely fits in the box.

Part 5 Question 1: Why is the quantity supplied of movie tickets the same regardless of the price of movie tickets? Enter your response in the box below.

Step 2: Graph the supply of concession stand items given the prices and quantities supplied below.
Concession Stand Item Prices and Quantity Supplied
Average Concession Stand Price Quantity Supplied of Concession Stand Items
$1 500
$2 700
$3 900
$4 1,100
$5 1,300
$6 1,500
$7 1,700
$8 1,900
$9 2,100
$10 2,300
$11 2,500
$12 2,700
$13 2,900

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Draw or insert graph here: (Make sure your graph fits entirely in the box.)

Part 6
Graph the supply and demand for movie tickets and concession stand items.

Step 1: Graph the supply and demand for movie tickets on one graph.

Draw or insert graph here: (Make sure your graph fits entirely in the box.)

Step 2: Estimate the equilibrium price and quantity for movie tickets:

Equilibrium Price: ¬¬¬_____________________

Equilibrium Quantity: ________________________

Step 3: Graph the supply and demand for concession stand items on one graph.

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Draw or insert graph here: (Make sure your graph fits entirely in the box.)

Step 4: Estimate the equilibrium price and quantity for concession stand items:

Equilibrium Price: ¬¬¬___________________________

Equilibrium Quantity: ________________________

Continue on next page. You will start your essay there, beginning with a title page that provides the title of the paper, your name, university name, course name, instructor name, and the date.

(Insert entire essay here—title page, essay, and references. Be sure to delete this comment.)

___________________________
Title: Analysis of Utility, Demand, and Supply for Movie Tickets and Concession Stand Items at Ruby Red Movie Theater
Name: [Your Name]
University: [Your University Name]
Course: [Course Name]
Instructor: [Instructor's Name]
Date: [Date]

Essay:

Introduction:
In this essay, we will analyze the utility, demand, and supply for movie tickets and concession stand items at Ruby Red Movie Theater. By examining the marginal utility and marginal utility per dollar, we can determine the quantity combinations that maximize utility. Additionally, we will calculate the equilibrium prices and quantities for both movie tickets and concession stand items to understand the market equilibrium.

Part 1: Marginal Utility and Marginal Utility per Dollar for Movie Tickets and Concession Stand Items
In this section, we calculated the marginal utility and marginal utility per dollar for movie tickets and concession stand items.

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For movie tickets, the marginal utility remained constant at $12.00, and the price per ticket was $10.00. This means that for each additional movie ticket consumed, the marginal utility derived was $12.00. The marginal utility per dollar for movie tickets is calculated by dividing the marginal utility by the price, which in this case is $12.00/$10.00 = 1.2.

For concession stand items, the marginal utility also remained constant at $15.00, and the average price per item was $15.00. Therefore, the marginal utility per dollar for concession stand items is 1.0.

Part 1 Question 1: Quantity Combination to Maximize Utility
To determine the quantity combination that maximizes utility, we need to consider the information provided in Part 1. However, the quantity combinations are not provided in the worksheet, so we cannot answer this question based on the given data.

Part 1 Question 2: Price of Movie Tickets and Concession Stand Items
The price of movie tickets is $10.00, and the average price of concession stand items is $15.00.

Part 2: Marginal Utility and Marginal Utility per Dollar for Movie Tickets and Concession Stand Items with Price Change
In this section, we recalculated the marginal utility and marginal utility per dollar for movie tickets with a price change. The marginal utility remained constant at $12.00, and the price per ticket was still $10.00.

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Part 2 Question 1: Quantity Combination to Maximize Utility
Similar to Part 1, the quantity combinations to maximize utility are not provided in the worksheet, making it difficult to answer this question based on the given data.

Part 2 Question 2: Price of Movie Tickets
The price of movie tickets remained unchanged at $10.00.

Part 3: Marginal Utility and Marginal Utility per Dollar for Movie Tickets and Concession Stand Items with Concession Stand Price Change
In this section, we recalculated the marginal utility and marginal utility per dollar for concession stand items with a price change. The marginal utility remained constant at $10.00, and the average price per item changed to $20.00.

Part 3 Question 1: Quantity Combination to Maximize Utility
As with the previous parts, the quantity combinations necessary to maximize utility are not provided, preventing us from answering this question accurately.

Part 3 Question 2: Average Price of Concession Stand Items
The average price of concession stand items changed to $20.00.

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Part 4: Movie Tickets and Concession Stand Items Demand Curve
To graph the demand curve for movie tickets and concession stand items, we need the price and quantity data from Parts 1 and 2.

The demand curve for movie tickets:

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