a) Why did Sony decide to introduce the price cut in the United States?
The reason for Sony cut price is they want to introduce a full-spec console with features. So they need to clear inventory. Because once the 60GB machines were sold out in the US They will introduce the new model. So form the long term, they make a right decision for keep the product competitiveness. b) Provide a justification for Sony’s decision to keep prices the same for the European market
Sony provide two free games and an extra controller to consumers, this is bundling. Sony try to use bundling to increase the values of product. It looks like the prices is reducing, but it’s the same. c) What might the decision say about the price elasticity of demand for the PS3 in the United States and also in Europe?
From David Reeves, president of Sony Computer Entertainment Europe, he said that once the stock of 60GB machines was sold out in the US - the model would no longer be sold. We can know the PS3 is elastic in the US markets. And Sony used the bundling in Europe market, so we can know the PS3 is not very elasticity in the Europe markets d) Do you own a PS3? If not, does the Sony decision have any effect on your likely purchasing decisions for games consoles in the near future?
I don’t have a PS3. For me, the reason that I buy the PS3 is I really need one. So the Sony decision can’t have any effect on me.

3.15
If given either stamps or cash by the government to these low-income families, these families will still need to eat. So therefore, theoretically, their consumption pattern could still be the same. I don't think the issue is about saving on the cost of printing and redemption of food stamps as is it more about ensuring that the recipients use the program for its intended benefit. I think it's debatable whether folks receiving welfare assistance would spend their resources rightly or downright waste it.
3.22
90,000/0.6=150,000
(0.6x145, 000=87,000)
(0.4x145, 000=58,000)
Total income was 150,000 and tax 58,000 and after tax income end up being 92, 000. Before deduction income tax after 90,000 after deduction, the income after tax is 92,000. Sam will save $2000 if there is a deduction of 5,000.
4.19
Consumer surplus refers to the buyer's willingness to pay minus the amount actually paid by the buyer's. Consumer surplus measures the buyers themselves felt with the extra benefits.
If the demand was perfectly elastic at the market price of $3 per espresso cup?
So the consumer surplus should be (3+2+1=6)$6.
4.25
Because ATM this product value’s increases with consumers increasing. So when consumer using an ATM, ATM’s product value is also increasing. This creates a network effect. Consumers need to use ATM; banks also need ATM to attract consumers, so the bank will installed automated teller machines. This cycle is a positive network effect.