econ312 Week 2 discussion latest 2017 august

Week 2 discussion

MARKET EQUILIBRIUM; PRICE ELASTICITY

Multimedia post (up to 10 points) - Demand, Supply, and Market Equilibrium: Create a short 1-2 minute slide presentation with a voice narration or a video using any technology you are comfortable with.

Think of a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc...). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T).

What happens to the demand curve and the supply curve when any of these determinants change? What would cause a change in demand versus a movement along the same demand curve for this product? How would you determine the new equilibrium price and quantity that result from these changes? Can you demonstrate some of these changes graphically?

Price Elasticity of Demand (up to 5 points) - Consider a product that you have purchased recently. If the price of this item increases, how would you adjust your purchases? Is the Demand for this product Price Elastic or Price Inelastic? Justify your classification by applying the determinants of elasticity to this product. Suppose price of this product is on the rise and you are the store manager. Would you be thrilled to be selling this product? How does an increase in price for this product affect your Total Revenue? Using specific examples, relate the concepts of Cross Elasticity and Income Elasticity to this product.

MyEconLab (MEL) Activity Post (up to 5 points) - Make a high-quality response to a classmate's MEL Activity post or complete your choice of one of the available Week 2: MyEconLab Activities for the week (recommended), and post a short summary along with one or more ideas on how to apply the principles explained in the selected Activity. Include the word "Activity" along with the topic of the MEL Activity in the first sentence.