Assignment on Microeconomics Sample
Added on 2021-04-17
6 Pages1481 Words112 Views
Running head: MICROECONOMICS ASSIGNMENT Microeconomics AssignmentName of the StudentName of the UniversityAuthor Note
MICROECONOMICS ASSIGNMENT 1Summary of the Interview For the concerned assignment, the EL Learner named, Charmaine Galicia (StudentID: 387612) was interviewed by the researchers. The respondent being from Philippine bybirth, has settled in Canada six years ago and is currently pursuing academics, with the futureaim of venturing in the corporate sector. For the concerned assignment, the respondent wasasked questions (only after taking consent) regarding the economic difference which exist inboth the countries and the changes in the price levels of different commodities which she hasfelt after coming from Philippine to Canada (Fink, 2012). The questions specificallycirculated on different types of commodities like foods, clothing, transportation, residenceand other regular things which are usually bought or availed by people in their every day life.The researchers also aimed to observed the consumption patterns of the concerned respondentand the changes in the same which have occurred, according to the perception of therespondent, after her migration from Philippines to Canada. From the overall study of the responses received it can be seen that the respondentperceived the overall price levels of the goods and services to be higher in Canada than thatof the same in Philippines, but also backs it up with the fact that the level of earning inCanada is much higher for an average resident than the level of earnings in Philippines. Thepurchasing power according to the respondent is also much higher in Canada than inPhilippines (Baker, 2016). When asked about the advantages of living in Canadian economy,she points towards the better infrastructures and facilities available in Canada especially interms of transport, residence and health care facilities. As can be seen from her statement,“the health care costs are obviously much higher in Canada, but the government providesmuch assistance and subsidies to us, especially the immigrant residents of the country whichmakes it easy for us.”
MICROECONOMICS ASSIGNMENT 2The respondent does not find rented apartments to be much costlier as compared toCanada, however, according to her buying a house in Canada can be hurting. She alsohighlights the fact that travelling in local transports and buying monthly passes for the samecan be much affordable than travelling in cabs or buying single tickets every time for localtransports. In terms of foods, the respondent asserts that while the necessary and low-costfoods are easily available in affordable prices in Canada, the restaurant meals and luxury fooditems are of higher price (Burstein & Gopinath, 2014). When asked about the change in theconsumption pattern or difference in the availability of any good or service in both thecountries, the respondent do not highlight any such thing. However, in terms of consumptionbehaviour, she comments that she needs to stick to necessity-based consumption as luxuryproducts are considerably costlier than that of the same in Philippines. The responses received can be analysed and interpreted in the light of the economicconcepts of elasticity of demand, which can be seen in the following section of the essay. Elasticity of Demand: Theoretical Overview In the theoretical framework of economics, the concept of prices elasticity of demandof a commodity is the degree of responsiveness of the demand of that commodity due to one-unit change in the price of the same (Baumol & Blinder, 2015). On the other hand, there alsoexits another concept of elasticity of demand known as the incomes elasticity of demand,which shows the degree of responsiveness of the demand for a commodity due to oneadditional unit of change in the income of an individual (Pindyck & Rubinfeld, 2014). Depending upon the nature of the commodity the magnitude of elasticity of demandof the same changes. The commodity whose responsiveness of demand is much higher ascompared to the change in price is known as highly elastic while that commodity whosedemand do not change as high as the change in the price is known as inelastic good (Hall &
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