Microeconomics in Daily Life

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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.…show more content…
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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