Monday, March 15, 2010

cs3265 midterm exam part 2

again, i felt that i was correct
in the end i was wrong
for the midterm paper i had 15/20 which is only the middle of the cohort
jiaqi i think he got 18, danfeng got 19, danfeng's friend got 18 among them, i am the lowest
but according to danfeng's friend, he say that he have some friends who got 12
i guess those are the lower percentile already
haiz, i'm disappointed with my score,
perhaps i could had gotten 16/20 if i didn't feel so much that i changed the answer to the following...

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Dear Dr.Chen

I do have another query.

Question 11.

From my understanding, the demand represented by this equation is Q=5-2P, and so for Q equal to 0, P = $2.50.
so when the store charges $0.50 with $12 membership fee, P = $12.50 if 1 DVD is purchased at the store, and so we shouldn't accept as price has exceeded $2.50.

However, if we were to consider greater quantity, for instance 100 DVDs, the total price would be 100 x $0.50 + $12 = $62.
If P = $2.50, total price for 100 DVDs would be 100 x $2.50 = $250.
The willingness to pay for the DVD is much higher and so, isn't the answer C/D (probably yes or cannot be decided) instead of the given answer B?


I'm sorry that I take into only considerations from my point of view only as a buyer and not more in depth calculations for this question.
________________________________________________________________
now... it is wrong again
she was able to convince me that I'm WRONG!

Given Q=5-2p, when p=0, the customer will rent 5 units of DVD. That is the maximum amount of consumption under this demand curve. If we assume that the marginal cost for the store owner is zero, the total consumer surplus is =5x2.5/2, which is less than $12. So by charging $12 for membership fee, the store owner charges higher than the total consumer surplus. The consumer won’t accept this price certainly.

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