Economics Question

Description

Elasticity of Demand

[WLO: 1] [CLOs: 1, 2, 4]

Prior to beginning work on this assignment, review chapters 4 and 5 of your textbook, Principles of Microeconomics and Price elasticity of demand using the midpoint method | Elasticity | Microeconomics | Khan Academy

It is essential that the quantity of goods and services should be produced according to the demand for these products. The knowledge of elasticity of demand helps in determining this output level.

For the Elasticity of Demand Assignment, you will submit a worksheet and a paper in Waypoint. In the Elasticity of Demand Worksheet, calculate the following:

• Price Elasticity of Demand
• Percentage Change
• Revenue

Based on the readings for the week and your calculations from the worksheet, answer the following questions:

In your paper,

• Explain what elasticity of demand means in your own words. Support your explanation with a suitable example.
• Describe the relationship between elasticity of demand and revenue when the prices are changed. [Hint: make sure to refer to the worksheet]
• Rank the demand of these three goods by their expected price elasticities of demand from most elastic to least elastic 1) a blue colored iPhone 2) a smartphone 3) iPhone.
• Explain why you ranked the goods above in the way you did.

The Elasticity of Demand paper

• must be two to four double-spaced pages in length (not including title and references pages and formatted according to APA Style as outlined in the Writing Center’s APA Formatting for Microsoft Word resource.
• must include a separate title page with the following in title case:
  • title of paper in bold font
    • Space should appear between the title and the rest of the information on the title page.
  • student’s name
  • name of institution (The University of Arizona Global Campus)
  • course name and number
  • instructor’s name
  • due date
• must utilize academic voice. See the Academic Voice resource for additional guidance.
• must include an introduction and conclusion paragraph.
  • Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.
  • For assistance on writing Introductions & Conclusions. and Writing a Thesis Statement refer to the Writing Center resources.
• must use at least two credible sources in addition to the course text.
  • The Scholarly, Peer-Reviewed, and Other Credible Sources table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source.
  • To assist you in completing the research required for this assignment, view Quick and Easy Library Research tutorial, which introduces the University of Arizona Global Campus Library and the research process, and provides some library search tips.
• must document any information used from sources in APA Style as outlined in the Writing Center’s APA: Citing Within Your Paper. guide.
• must include a separate references page that is formatted according to APA Style as outlined in the Writing Center.
  • See the APA: Formatting Your References List resource in the Writing Center for specifications.