Book Cover Economics 14/e   McConnell
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Chapter 21 - Consumer Behavior And Utility Maximization


Chapter 21 Web-Based Questions for McConnell and Brue 14th Edition

Chapter 21 Web-Based Questions

21-13 Web-based Question      

The ESPN Sportszone—To Fee or Not to Fee The ESPN Sportszone http://espn.sportszone.com/ is a major sports information site. Most of the content is free but ESPN has a Premium Membership available for a monthly or an annual fee. Similar but fee-free sports content can be found at USA Today Sports http://www.usatoday.com/ CNN/Sports Illustrated http://www. cnnsi.com/ and CBS Sports Line http://cbs.sportsline.com/. Since ESPN has put a price tag on some of its sports content it implies that the utility of a premium membership cannot be found at a no-fee site and is therefore worth the price. Is this the case? Use the utility maximization rule to justify your subscription or nonsubscription to the Premium Membership.

 

21-14 Web-based Question    

Visit Wal-Mart Online—Here’s $500 Go Spend It Assume that you and several classmates each receive a $500 credit voucher (good for today only) from Wal-Mart Online. Go to http://www.wal-mart.com/ and select $500 worth of merchandise using Add to Cart to keep a running total and use Review Cart to print your final selection. Compare your list with your classmates’ lists. What explains the differences? How many of your items were on sale? Would you have purchased these items if you had received $500 in cash?

 

 


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