Microeconomics Assignment 2: Demand Elasticity and Consumer Patterns

This microeconomics assignment presents an interview with a respondent, exploring the economic concept of demand elasticity through a comparison of consumer behavior in France and Canada. The interview focuses on the respondent's perceptions of cost of living, including prices of food, clothing, and transportation, as well as housing costs. The respondent notes that Canada is generally more affordable, particularly for groceries and restaurant meals, although housing costs are higher. The interview also investigates how these price differences impact the respondent's consumption patterns. The assignment provides insights into the application of economic principles in real-world scenarios, illustrating how price levels influence consumer choices and behavior in different geographic locations. The respondent's responses highlight the nuanced relationship between price, income, and consumption, offering a practical perspective on economic concepts.

Running head: MICROECONOMICS ASSIGNMENT
Microeconomics Assignment
Name of the Student
Name of the University
Author Note

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Interview of the Respondent
Respondent Name: Justin Manta
Respondent’s Country of Origin: France
Respondent ID No:
Declaration on part of the interviewer
Hi. Let me introduce myself and my companion. We are conducting this interview as a
part of our classroom course and our topic of exploration is the application of the economic
concept of demand elasticity of goods and services in the real scenario of consumer’s behavioral
patterns. For gathering the required information, we will be asking you several questions
regarding the differences in the expenditures and consumption patterns which you have
perceived to be present in France, your home country and in Canada, where you stay now. To
maintain your confidentiality, this information and your opinions will only be used for academic
research purpose and it will not be revealed to any other unrelated person. We would like to
write down your opinions only after you give us consent.
Are you willing to participate?
Yes
Q1. What are the difference in general in terms of cost of living in Canada and France?
R1: Personally, I feel Canada is a better place to live in compared to that of France when you are
comparing both the terms of the prices of goods and services and cost of living of an average
individual. I came to this country only a couple of years ago and I find Canada cheaper than
France, though you get almost all the things in Canada, which you used to get in France.

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Q2. What are the difference in the prices of basic consumption goods like foods, clothing and
other amenities?
R2: Groceries are far cheaper in Canada than that of the same in France. Not only groceries and
every day food products, but also restaurant meals are quite cheaper in Canada when compared
to France, if you compare in terms of Canadian Dollars exchange rate.
Q3: Can you give us some examples?
R3: See. There is this interesting trend in the prices. If you buy every day foods like rice, breads
or eggs, then you will find that Canada is slightly costly than that of France. I am saying this in
terms of exchange rates. But the average income is also much higher in Canada than that of
France in this aspect. But, if you go to restaurants or buy things like meats and fruits, Canada is
way cheaper than France. I can buy 1 Kg of cheese with 11 Canadian Dollars. The same would
have costed me nearly 23 Canadian Dollars in France.
Q4: What are differences in terms of transport facilities?
R4: Frankly, I don’t find much differences in the expenditures behind transports and commutes
between France and Canada. Public transport systems and their fares are same in both the
countries. But if you take a taxi or cab, then France is costlier than Canada.
Q5: Is there anything which you find to be costlier in Canada than that of France?
R5: Yes. One thing is very costly in Canada. That is renting a house in Canada. The rents in this
country are considerably high than I used to find in France. Like renting one single bedroom
apartment in the country costs me around 800 Canadian Dollars, while the same, in the heart of
cities in France would have costed to be 650-660 Canadian Dollars at the max.

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Q6: Did the difference in the price levels in both the countries considered have any effect in your
consumption behavior?
R6: Not much. As I said earlier, apart from the house rent thing, I actually find Canada far cheap
than France. In fact, I can indulge in more restaurant meals, more frequent cab rides, shopping
and travelling in Canada than I used to do in France.
Q7: Is there anything which you used to get in France but do not get in Canada?
Q7: No. No such things actually.
Thank You for your precious time.