# CONSUMER AND FIRM BEHAVIOUR Questions

The University of Queensland
Brisbane QLD 4072 Australia
T +61 7 334 670 64
F +61 7 3365 7299
E k.kalayci@uq.edu.au
W http://kenankalayci.com/
ABN: 63 942 912 684
CRICOS Provider 00025B
ECON 7110:
CONSUMER AND FIRM BEHAVIOUR
Problem Set 1 (15%) Due: 16:00. Monday, August 30th, 2021
Questions
1) Imagine your laptop computer is broken and you want to buy a brand new one.
a) Search online and make a (random) list with ten laptop models. (0.5 marks)
b) What are the attributes of a laptop computer that are most important to you? Describe your utility
function
๐ข(๐, ๐, ๐, ๐, ๐)
where a, b, c, d are different attributes of the laptop and p is the price.
(1.5 marks)
c) Reduce the number of your options from ten to three alternatives using the elimination by aspects
heuristic. Describe your process. What are the three laptop models left in your choice set? (1 mark)
d) For the remaining choice set with three laptop models, show whether your preferences are
i. complete (1 mark)
ii. transitive (1 mark)
e) Describe (in a few sentences) how your actual choice process would look if you had to buy a new
laptop. Do you rely mainly on rational utility maximization or simple heuristics?
(1 mark)
2) Imagine you are the prime minister of Australia managing the Covid-19 vaccine rollout.
a. On the 19th of August, 2021, what was the share of the Australian population fully
vaccinated against COVID-19?
Use data from ourworldindata.org to answer. (0.5 marks)
b. Choose an OECD country (apart from Australia). Imagine that Australians use the share
of the population fully vaccinated against COVID-19 in your chosen OECD country as
their reference point (๐๐). Suppose the difference between Australiansโ reference point
(๐๐) and the share of the Australian population fully vaccinated against COVID-19 (AU)
determine Australiansโ value ๐ฃ(๐ฅ), where (๐ฅ = AU – RP).
Assume that the Australian publicโs value function is
๐ฃ(๐ฅ) = 300๐ฅ ๐๐๐ ๐๐๐ ๐ ๐๐  (๐ฅ < 0)
๐๐๐
๐ฃ(๐ฅ) = 100๐ฅ ๐๐๐ ๐๐๐๐๐  (๐ฅ โฅ 0)
2
What was Australiansโ value on the 1st of June 2021? (1 mark)
c. What was Australiansโ value on the 14
th of August 2021? (1 mark)
d. Comparing your citizensโ values for c) and d) above, would you say you did well in
progressing the vaccine rollout since June? (0.5 marks)
3) Suppose you want to find out whether lockdowns to fight Covid-19 works, i.e., lockdowns negatively
affect the number of confirmed Covid-19 cases.
Imagine that you have data on the strictness of lockdowns and the number of confirmed Covid-19
cases for every suburb in Australia. The data shows that strict lockdowns are positively associated
with confirmed Covid-19 cases (i.e., the tougher the lockdowns are, the higher is the number of
confirmed Covid-19 cases in that suburb).
a) Explain why the positive association in your data does not necessarily mean lockdowns increase
the number of confirmed Covid-19 cases.
(2 marks)
b) What other ways can you establish causality between the strictness of lockdowns and the number
of confirmed Covid-19 cases? Give an example for any two of the four empirical tools presented in
the lectures. Discuss potential limitations/challenges of each method. (4 marks)

Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Papers Owl, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@acmehomework.com.

Try it now!

## Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

Papers Owl has stood as the worldโs leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

## Essay Writing Services

At Papers Owl, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.