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GB540 Unit 2 Assignment




Question;Unit;2 Assignment;According;to the law of demand, if price increases, quantity demanded of a good or;service will decrease or vice versa. Price elasticity of demand tells us how;much quantity demanded will decrease when price increases or how much quantity;demanded will increase if price decreases.;On;the other hand, according to the law of supply, if the price increases;quantity supplied of a good or service will increase. Similarly, if price;decreases, quantity supplied will decrease. The degree of sensitivity;(responsiveness) of production/supply to a change in price is measured by the;concept of price elasticity of supply.;Total;revenue is calculated as the quantity of a good or service sold multiplied by;its market price. Thus it is a measure of how much money a company makes from;selling its product. The core objective of a firm is maximizing profit. One of;the ways to maximize profit is increasing total revenue. The firm can increase;its total revenue by selling more items or by raising the price. Among others;this depends on the nature of the price elasticity of demand. Moreover, the;length of time is an important factor in determining price elasticity of demand;and supply.;? Explain the relationship between the price;elasticity of demand and total revenue. What are the impacts of various forms;of elasticities (elastic, inelastic, unit elastic, etc.) on business decisions;and strategies to maximize profit? Explain using empirical examples.;? Is the price elasticity of demand or supply;more elastic over a shorter or a longer period of time? Why? Give examples.;? What are the impacts of government and market;imperfections (failures) on the price elasticities of demand and supply?;The;Assignment should be a minimum of four pages in length, excluding title page;and reference page. Your paper must incorporate several quality references, and;it must be organized in APA format.;Submit;your paper to the Unit 2 Dropbox by the end of Unit 2.;GB540Unit 2 Assignment Rubric;Content and Analysis;Points Possible;Points Earned;? Describe the Relationship between Economic;Freedom and Variations in Wealth among countries.;10;? Selected a country from the Index;5;? Explain the country?s ranking while;including reference citations from additional source material.;15;? Summarized how the chosen country?s ranking;has change over the last 5 to 10 years;10;? Five pages in length;10;? Included at least two reliable references;? Included the Index of Economic Freedom as a;reference;6;Writing Style;Grammar, APA Format;14;Total;70


Paper#58070 | Written in 18-Jul-2015

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