Economics for Business Paper
Paper
In today's business world, it is vital for companies to carefully assess their markets and competitive environment and operate efficiently. A critical skill for business managers is the ability to effectively assess the effects of microeconomic factors on the supply and demand of a company's products and services as well as on a company's business strategy and financial performance.
For this first project, you will produce a microeconomic analysis related to a publicly traded company chosen from the following list: WAL-MART
Part 1 (2-3 Pages)
Submit the supply, demand, and market equilibrium component of your microeconomic analysis paper. This milestone should be a 2-3- page paper structured as follows: First, it describes the price elasticity of supply or demand for your product or service. Second, it explains how two nonprice factors impact the demand of your chosen product or service. Third, it explains how two nonprice factors impact the supply of your chosen product or service. Fourth, it defines the industry and the market equilibrium associated with the product or service. Fifth, it predicts the effect of changes in supply and demand on the market equilibrium. Finally, it describes the decisions related to supply and demand for the product or service that you would make based on the predicted changes in supply and demand on the market equilibrium
a) Determine the extent to which the supply and demand of your chosen product or service are sensitive to changes in price by applying the concept of elasticity. In other words, what is the price elasticity of supply or demand for your product or service?
b) Select two nonprice factors that impact the demand of your chosen product or service. Justify your selections.
c) Select two nonprice factors that impact the supply of your chosen product or service. Justify your selections.
d) Define the industry and the market equilibrium associated with the product or service.
e) Predict the effect of changes in supply and demand on the market equilibrium.
f) Based on the predicted changes, what decisions related to supply and demand would you make for your product or service?
Part 2
Submit the production and costs component of your microeconomic analysis paper. This milestone should be a 3-4-page paper structured as follows: First, it describes three key inputs (or factors of production) and fixed and variable costs involved in the production of your chosen product or service. Second, it analyzes the factors that impact your choice of inputs to produce the chosen product or service. Third, it examines the production decisions that you would make based on the analysis of the factors impacting the choice of inputs to produce the chosen product or service
a. Describe three key inputs (or factors of production) and fixed and variable costs involved in the production of your chosen product or service.
b. Analyze the factors that impact your choice of inputs to produce the chosen product or service.
c. Examine the production decisions that you would make based on the analysis of the factors impacting the choice of inputs to produce the chosen product or service.