from a microeconomic perspective, applying concepts learned
in Modules One, Two
,
and
Three.
Specifically, students will examine the sup
ply and demand conditions for the goods or services the firm produc
es
, paying special attention to how sales
and product development have evolved over
time.
Students will then apply the elasticity concept to determine how the price elasticity of demand for
the firm’s
goods or services would be categorized
,
and
they
will
examine what that
suggests
for the firm’s ability to increase or decrease prices.
Prompt:
Submit
a draft of the
supply and demand conditions
(Section II)
and
price elasticity of demand
(Sec
tion I
II
) of your research paper, including all critical
elements listed
below
. You will
analyze data on firm sales and in the market overall to identify trends and inform your recommendation for the firm’s future
actions. You will also use available data
to determine the price elasticity for the goods or services your firm produces and explain the factors that influence
consumers’ reactions and
the
firm’s pricing decisions.
Specifically the following critical elements must be addressed:
II.
Explore the suppl
y and demand
conditions
for your firm’s product.
a)
Evaluate
trends in demand over time and explain their
impact
on the industry and the firm. You should consider including annual sales figures for
the product your firm sells.
b)
Analyze information and data rel
ated to the demand and supply for your firm’s product(s) to support your recommendation for the
firm’s
actions
. Remember to include a graphical representation of the data and information used in your analysis.
III.
Examine the
price elasticity of demand
for the
product(s) your firm sells.
a)
Analyze
the available data and information, such as pricing and the availability of substitutes, and justify how you determine the pr
ice elasticity
of demand for your firm’s product.
b)
Explain the factors that affect
consumer res
ponsiveness
to price changes for this product, using the concept of price elasticity of demand as your
guide.
c)
Assess how the price elasticity of demand impacts the firm’s
pricing decisions
and revenue growth.