Question

Is there a Dr. Seuss children Literature that appears to represent a microeconomics concept? Explain choice and what the specific microeconomics concept used and how the statement links to the concept?

Help please!

Answer 1

Dr. Seuss has produced different children's literature under the name of the books. These books represent microeconomics concepts such as complements and substitute goods affecting elasticity, utility theories, preferences, market structure and discrimination using price as well as market failures such as adverse selection.  These concepts are specifically related to the individuals and forms that build microeconomics. Hence, it can be said that Dr. Seuss uses microeconomics concepts in his children's books and literature that is represented with a tinge of humor.

The choice is his book Green Eggs and Ham that uses economic concepts such as cross elasticity of demand due to the presence of complement goods and substitute goods, affecting the price level as well as utility theories. The cross elasticity of demand for a complement goods is negative, whereas it is positive for substitute goods. For example, an increase in the price of ham, increase the demand for eggs and vice versa. Here, goods are represented as substitutes. Further, a person with a limited budget, willing to buy both of ham and green eggs, wants to calculate marginal utility per dollar spent for each unit of ham and green eggs. On the basis of it, the number of units of green eggs and ham will be purchased to maximize the utility. So, these concepts are the part of microeconomics in nature.