Quick survey to help with an Economics project. (PLEASE HELP) - Page 1
Forum section: electronics / general

author: MOTScienctist
author_rank: Newbie
timestamp: February 22, 2015, 02:51:55 am
content: So, I need to see how demand for some bit of electronics gear responds to price. In each question part, assume that you start out with no multimeters and are now obtaining some.Scenario: You have a relatively small amount of money that you can set aside for electronics equipment and are obtaining some multimeters for the first time (Not so much money that getting 2 Flukes fits your budget well). Let's say you pick one like a BK Precision 2709B and it is priced at $100.Question 1a: How many of this multimeter do you purchase? (Again, assume that you start out with none)Question 1b: The multimeter is $75 instead of $100, how many multimeters will you buy?Question 1c: The multimeter is $125 instead of $100, how many multimeters will you buy?Question 2a: You get a 5% pay raise. How many of the $100 BK Precision multimeters will you buy? (With the added money, you might start to consider higher quality multimeters and may want to buy those instead).Question 2b: You get a 10% pay raise instead of 5%. How many of the $100 multimeters will you buy? (Again, better multimeters is something you consider)Assume that we don't have that pay raise at this point.Question 3a: The glorious Fluke 87-V drops in price from $350 to $250. What quantity $100 BK Precision multimeters do you demand in this case?Question 3b: The Extech EX505 was $100, but instead it's $75. What quantity of $100 BK Precision multimeters do you demand in this case?Many thanks to those that respond. You can leave answers like: 1a-2,1b-3,1b-1....

author: IanB
author_rank: Super Contributor
timestamp: February 22, 2015, 03:09:31 am
content: I'm afraid your question is flawed in its presumptions. If I start out with no multimeters I always buy one multimeter, regardless of price. I will buy the least expensive multimeter that seems to meet my requirements and that I can afford.After buying one multimeter I will use it for a while and learn about it, and I will use that learning to influence my decision about a second multimeter. I may decide that my first was too cheap and was lacking in important areas, and so my second meter will a different and more expensive one. Or I may decide that my first purchase was overkill, and that I can complement it with a cheaper second purchase.Under almost no circumstances will I buy two of the same thing at the same time. If my purchase turns out to have been a mistake, I will have doubled the mistake. Economically, this would too much risk to take.In summary, price affects commodity purchases like beer where items are routinely purchased in volume. Price has almost no effect on investment purchases where what the item can do is more important than what the item costs. Price then becomes a go/no go factor. If the Fluke is too expensive I won't buy it, regardless of its reputation, unless I determine that there is an economic benefit to the purchase.

author: miguelvp
author_rank: Super Contributor
timestamp: February 22, 2015, 03:22:18 am
content: Because of the statement that we couldn't afford 2 flukes I will assume I could purchase at least one in all of the above cases. Also because the Extech starts at $100, I would purchase that one as a 2nd DMM instead of the BK, so:1a-0, 1b-0, 1c-0, 2a-0, 2b-0, 3a-0, 3b-0

author: John Coloccia
author_rank: Super Contributor
timestamp: February 22, 2015, 03:43:33 am
content: I would never buy more than the bare minimum number than I needed, no matter what the price. I would also never buy less than the bare minimum than I needed, no matter what the price. If I need one, I buy the best one I can afford. If I need 20, I buy the best 20 I can afford. I couldn't care less what my salary is, or what the meter costs. I always buy no more than what I foresee needing, and I always buy the best I can afford of however much I need.So I guess the answer to all the questions is 1. 2709B's a very nice meter, BTW. Perfect for the bench.

author: atferrari
author_rank: Frequent Contributor
timestamp: February 22, 2015, 01:52:09 pm
content: Is this oriented to profesionals, isn't it?Anyway it would probably be more realistic to ask, following a non-biased questionnaire, about past (but actual) experience. Who knows?I am sure that people already having satisfied their needs on a certain type of instruments will be not realistic at all. How could they be?

author: Seekonk
author_rank: Super Contributor
timestamp: February 22, 2015, 03:53:35 pm
content: If you can get a FREE Harbor Freight DVM every month, when will you stop getting them?A. One is enough.B. They only work for a month.C. I just want the 9V batteries in them.D. Christmas is coming. My friends aren't worth more than that.E. I stack them together to get extra digits.

author: dannyf
author_rank: Super Contributor
timestamp: February 22, 2015, 04:00:31 pm
content: QuoteIndividuals may have different reservation prices for the same device and their price elasticity differs as well.On top of that, you will have to adjust for selection bias - the participants may not be typical.I tend to think that in equilibrium, the market (=all of us) is sufficiently efficient so you can observe the price points of different multimeters as the demand curve.

author: German_EE
author_rank: Super Contributor
timestamp: February 22, 2015, 04:05:16 pm
content: Question 1a: How many of this multimeter do you purchase? TwoQuestion 1b: The multimeter is $75 instead of $100, how many multimeters will you buy? TwoQuestion 1c: The multimeter is $125 instead of $100, how many multimeters will you buy? TwoQuestion 2a: You get a 5% pay raise. How many of the $100 BK Precision multimeters will you buy? TwoQuestion 2b: You get a 10% pay raise instead of 5%. How many of the $100 multimeters will you buy? TwoAssume that we don't have that pay raise at this point.Question 3a: The glorious Fluke 87-V drops in price from $350 to $250. What quantity $100 BK Precision multimeters do you demand in this case? Two - The Fluke is still too expensiveQuestion 3b: The Extech EX505 was $100, but instead it's $75. What quantity of $100 BK Precision multimeters do you demand in this case? Two - I would prefer the BK device

author: lapm
author_rank: Frequent Contributor
timestamp: February 22, 2015, 04:08:22 pm
content: Need for gear is function of how useful it is to person planning on buying one...I have one expensive multimeter and pile of cheap ones(some need fixing in some ranges)...If i would be buying my first multimeter now, with all that i know now... I would go for medium range (50-100€) as first one. Second one would be more pricier again...On that note, i still have the super cheap multimeter i got when i first bought one... current price would be in range 5-10€ range (super cheap yellow chinese crap)... That's what got me started all those years ago...

author: uChip
author_rank: Contributor
timestamp: February 22, 2015, 04:20:19 pm
content: @IanB +1

author: GreyWoolfe
author_rank: Unknown
timestamp: February 22, 2015, 11:31:30 pm
content: Quote from: Seekonk on February 22, 2015, 03:53:35 pmF. I put them in the sealed mystery prize boxes that we sometimes do, along with the legitimate door prizes given away at our ham radio club Christmas banquet