Assignment task:
Principles of Economics and Entrepreneurship
One of the topics you learned about economics in this first module is price elasticity of demand. This is an important topic to you as a new entrepreneur because it will help you to price your products appropriately. This is because a change in price affects the demand of the product. Some companies assign a lower cost to a new product for a short period of time and then bump up the price when the introductory period is over, which impacts demand for the product.
In a 2- to 3-page paper, explain the economic concept of elasticity of demand. In addition, answer the following four questions as they pertain to your business venture.
- What will happen to demand for the new product when the price is raised by 5%?
- Is there an impact on the demand for your product if the introductory period is too short?
- How large a reduction in price of a product is required to increase sales by 25 percent?
- Besides elasticity of demand, what other economic and noneconomic forces might occur over time in the global market's reception to your new product? Need Assignment Help?
Keys to the Assignment
- Explain your analysis using terminology and concepts introduced in this module.
- Cite all sources and provide a reference list using APA format.
- Proofread and edit the paper. The goal is zero errors.
For help writing papers, citing sources, proper referencing, and so forth, use Trident University's Introduction to APA-7th Edition.