about mathematics of the modern world, Assignments of Mathematical logic

Download about mathematics of the modern world and more Assignments Mathematical logic in PDF only on Docsity! Baron B. Marasigan BA2101 Exercise 1 1. Demand - Demand is the quantity of a good or service the consumer is willing to purchase at specific prices during a period. The demand for a good at a certain price generally reflects the consumer’s willingness to pay and expectation for consuming that product. The goods indeed range in price, from necessities to luxuries. 2. Moon prices – prospect theory allows for the fact that individuals may choose a decision which doesn’t necessarily maximize utility because they place other considerations above utility. 3. Equilibrium - The equilibrium price is showing through the intersection of the demand and supply curve in an equilibrium price graph. It is also called the market-clearing price. The determination of the market price is the purpose of microeconomics, and hence microeconomic theory is also known as price theory. 4. Supply - The theory of price is an economic theory that states that the price for any specific good or service is based on the relationship between its supply and demand. The theory of price posits that the point at which the benefit gained from those who demand the entity meets the seller's marginal costs is the most optimal market price for that good or service. 5. Free or paid - The prospect theory explains that the negative utility is greater when a product or service is paid or bought personally by a consumer. Expected utility is also used to evaluate situations without immediate payback, such as purchasing insurance. When one weighs the expected utility to be gained from making payments in an insurance product over the expected utility of retaining the investment amount and spending it on other opportunities and products, insurance seems like a better option. 6. Better to pay in cash - It can be easy to get into debt, and not so easy to get out of it. In addition to paying more in total for purchases over time, you’re also accumulating more debt if you don’t pay your bills off from month to month. When you pay with the cash you’ve budgeted for purchases, it’s easier to track exactly how you’re spending your money. It’s also an eye opener and keeps you as to how much cash is going out over coming in from week to week or month to month. Exercise 2 1. Bundle Pricing Bundling is a marketing strategy where companies sell several products or services together as a single combined unit. Bundled products are typically offered at discounts to stimulate demand, lifting revenues often at the expense of profit margins. 2. Economy Pricing Economy pricing is a method of pricing in which a low price is assigned to a product with decreased production costs. It’s a pricing strategy employed by businesses to make generic and commodity goods appealing. In other words, it makes customers feel like they’re getting a deal.