Microeconomics in Daily Life

1042 Words Sep 14th, 2013 5 Pages
Econ 1
Professor Carter
December 12, 2011

Microeconomics In My Daily Life

Throughout my life, I have always been reading and hearing about economic issues and concepts, but I never thought about the impacts of economic models on my personal life. Before learning about microeconomic concepts, I always thought that a course in the field of Economics, would teach me theories that only apply to the economy of a nation as a whole and not to an individual’s life. However, there were a lot of concepts throughout this course that I found relative to my personal life. Among all the concepts that I have learned in the Microeconomics course, “Opportunity Cost”, “Sunk Cost”, and “Supply and Demand” have the most impact on my daily life.
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However knowing the concept of opportunity cost helped me reconsider my decision because I realized that the opportunity cost of paying for the SUVs gas in a year is equivalent to the value of many alternatives such as buying new alpine skis or renting better condos at the resort. As a result I decided not to pick that choice and instead spend my money on my alternatives. Since my house is close to Beverly Hills, I sometimes feel the price discrimination when I shop at the local stores or fill my gas tank at the local gas stations. As a result, most of the times I evaluate my choices and alternatives in order to find better deals and make better decisions. Often times, I choose Costco as a place to shop for household goods because the offers that I find there are very less than the maximum amount that I am willing to pay for a good, which confers a consumer surplus for me. I would rather buy household goods such as toilet papers, laundry tides, and liquors in larger amounts and quantities and pay less, than purchasing lesser amounts of these goods from a store in Beverly Hills and pay more. However, shopping from Costco is not always the best choice. Driving for about 5 miles, spending time in traffic, and waiting in the long lines of cashiers are the opportunity costs that I have to pay in order to pay less money. So measuring…

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