Help in Microeconomics

sonrays06

sonrays06

New member
Joined
Jan 22, 2021
Messages
27
I know the rules; however, I need assistance in this category. Please don't scold me lol! But are there any examples on websites for this:

Go to the Collectibles section of eBay (http://collectibles.shop.ebay.com/) and pick any subcategory that looks interesting to you. Find an auction that is just about to end and bookmark it. When the auction has ended, return to the auction page and click on “Bid History.” (If you have an eBay account, you have the option for searching “Completed Listings.”)

Your assignment is to use the bid history to construct a demand curve.

(You will have to “reorder” the bids a bit to figure this out. Try to figure out the maximum price that each of the bidders is willing to pay, and then use that information to construct the demand curve. See this example for how to get from a bid history to a demand curve.)

HELPFUL NOTES:
  • Only count the highest bid for each bidder. If one bidder bids $25 but then later bids $50 and then never bids again, it must be that his maximum willingness-to-pay is $50; the $25 bid is irrelevant. If the bidder had been willing to bid more than $50, he probably would have bid more than $50.
  • Remember that demand is about willingness to buy something. So if there are 4 bidders in the auction, then that means that at some prices there were 4 willing buyers, even though there’s only 1 item. Note that in an auction, the price rises until there is only one willing buyer left. If there are two or more willing buyers, then the auction isn't over yet!
  • Pick an item with at least 3 bidders, so you have something interesting to draw. This means the number of bids must be at least 3, but could possibly be more. It may take some searching.
  • You may search other areas of eBay as well, but I like Collectibles because it usually features one-of-a-kind items, which helps explain why the one highest bid ends up being the selling price.
  • Make sure you unclick to eliminate “Buy it Now” items from the listings because these will not generally be helpful.
WHAT TO SUBMIT

Below, you need to upload your picture. It can be a picture that you made with a program like Excel, or it can be a hand-drawn graph that you scan or take a picture of with your phone. Also please enter the eBay item number in the text box below. I need the eBay item number so that I can check the bid history to confirm your data.
 
Hey we are willing to help anyone who works. And that sometimes means giving people pointers in the right direction to start. But first we need you to tell us why you can’t even start. If it is how to use ebay, I for one can help you not at all because I have never used it. But microeconomics I can help with.

Can you tell me what a demand curve is? What ir means? What its graph looks like?
 
Demand curve, in economics, a graphic representation of the relationship between product price and the quantity of the product demanded. It is drawn with price on the vertical axis of the graph and quantity demanded on the horizontal axis.
Demand Curve
 
There you go. But let's start with an earlier vocabulary: a demand schedule.

A demand schedule is a list of prices per unit side by side with the number of units that will be bought at the corresponding price. It might look like this

Free 10 units
$1 per unit 9 units
$2 per unit 7 units
$3 per unit 4 units
$4 per unit 1 unit
$5 per unit None

Could you turn that schedule into a graph? (That would have to ignore that the units might not have any values except as whole numbers.)

So the exercise is asking you to use an actual auction on ebay to find out what is the maximum price that each bidder is willing to pay for the "unit" being sold. Can you see how that might allow you to develop a demand schedule.

For example, suppose there are three bidders for a single item. Each makes a bid higher than 10 dollars. So we know that three such units could be sold at a price of 10 dollars per unit. Suppose only two bidders makes a bid higher than 20 dollars. So we know that two such units could be sold at a price of twenty dollars per unit. And suppose the winning bid was for a price of 25 dollars for the single item on sale? What is the demand schedule and A REASONABLE associated graph
 
You must log in or register to reply here.
Top