Assignment #7

[Kathryn Ciccolini BSN, RN, OCN]

Hi Everyone,

Hey guess what! I am up doing my Microecon work... woooo - caffeine!! jk

I spoke with the recitation teacher today and she said that for Letter C in the assignment due tomorrow we will not have to speak about elasticity and we only have to discuss income and substitution effect. Feel free to respond back with any details that you have heard. 

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Kathryn Ciccolini BSN, RN, OCN 

Memorial Sloan-Kettering Cancer Center | Young EPW-NYS Representative 
NYU Wagner MPA - Health Policy and Management Candidate 2016
Phone: (978) 870-2935 | LinkedIn | Email | Facebook

[kathryn....@gmail.com]

HI everyone - I am hoping you get this before the class today. I just spoke with the tutor and she said there is one small point in letter C regarding elasticity (but she was not stressing this). I am so sorry!! My recitation leader was confident about this yesterday which is why I sent the email. Overall this policy may achieve the philanthropist's goals of encouraging one consumption of obedience lessons but we cannot we cannot definitively conclude that this will be an effective policy in the unlikely scenario that Jake is inelastic to price change, his quantity demand would not change due to decrease price. 

Here is the chart that I typed up as well. 

Obedience Lessons $ Decrease	AOG	Lessons
Substitutes	(-)	(+)
Income	(+)	(+)
Net	? Ambiguous. Depends on individual preference and relative strength of income/substitution effect	(+) - unless in the unlikely scenario Jake/consumers are relatively inelastic to price change they will not buy more.

I really hope this helps and that I am right!!! Please chime in if you have anything to change/add.

Thanks,

Katie C