Public goods vs common resources Discussion topic examples: opportunity cost, the cost of taxation, demand and government policy, externalities, consumer s

Public goods vs common resources Discussion topic examples: opportunity cost, the cost of taxation, demand and government policy, externalities, consumer surplus, government revenue, public goods and common resources, monopoly. requirements: be creative, from daily life, pictures or videos (from internet or real life) needed. Consumer Surplus
Economics is present in our lives in many aspects. After doing some thinking about how economics
applies to my life, I realized that it has been present in my life without even knowing it. For example the
time the PlayStation 4 and Xbox One came out, I was excited to purchase a new generation console
because of my interest in video games. The problem was choosing which console to buy and it came
down to which one would provide a positive consumer surplus or a surplus of zero. My willingness to pay
for a console, before including taxes was $450, and at the time there was 2 new consoles in the market.
The reason I chose this price is because I remember looking over the two consoles but in my mind I knew
that I wasn’t going to spend $500 for a video game console. There was the PlayStation 4 and the
Xbox One. The PlayStation was valued at around $400 and the X-Box was valued at around $500 and
when it came time to make my decision I was influenced by the price of the console. Without even
thinking about it, I was utilizing economic concepts to decide between, which console to get. The reason 1
say this is because I was looking to have a positive consumer surplus, which is defined as my willingness
to pay for a product minus the amount that I actually paid. In this case, purchasing the Xbox would give
me a negative consumer surplus because the amount that I would have paid would have exceeded my
willingness to pay. The PlayStation on the other hand would have given me a positive consumer surplus
since I was willing to pay more than it actually cost. At the time, the demand for the console that I wanted
was very high and it was very difficult to find it in stores. The reason the demand was high could be
explained through concepts in economic. The reason for the upward shift of the demand curves was the
price of related goods. Both of these consoles provided the consumer the same satisfaction but at
different prices. They provided entertained to the consumer but the price of one was greater the price of
another. Therefore, there some people that chose to buy the cheaper console because these two items
are considered substitutes. I could not find the console anywhere in stores and it was very expensive to
buy it online. Buying it online would not give me a positive consumer surplus because the people selling it
wanted to make a profit. They were seeking a large amount of producer surplus because of the high
demand of the new console. In the end, my willingness to pay was not high enough to buy it online sol
waited until the stores received more consoles. It was about 2 months before I bought the PlayStation 4. It
was interesting to see that in every store there was a couple Xbox-One’s in stock while the PlayStation 4
was sold out. Another interesting concept from economics that exists in the video game market is
tying. These concepts will continue to play a role in my life even though my willingness to pay will vary
between goods. In making my decision on whether to buy a good or not I need to take into account
consumer surplus. There are many other concepts that will prove to be important in my life but this one
stuck out to me the most.
XBOX ONE
B PS4
B)
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