Describe elastic demand


Assignment:

1) Assignment Prompt

CCM Course Project Overview

Pick a company that you would like to work for that isn't yet a major MNC (multinational corporation), but needs to expand its presence in emerging international markets. As one of the company's executives you will be tasked with preparing the lead executive for deployment in a foreign country. Across the course, you will create a portfolio of deliverables to support the executive's successful transition into a new cultural and business environment.

Pick a foreign country and the particular city where your company will establish its headquarters.

Remember: You are preparing these materials for a top-level executive, so 1) Don't waste their time; 2) Focus; 3) Be Useful

Your executive needs assistance with: Thinking Globally, Acting Locally

Deliverable: Cultural Chart

Create a Hofstede Value Dimensions Chart that analyzes and organizes the cultural norms and risk mitigation responses for your selected country and city.

2) Assignment

A. Price elasticity of demand measures the responsiveness of quantity demanded of a product to a change in the price of that product.

a. State the (midpoint) formula for calculating price elasticity of demand.

b. Describe elastic demand.

c. Describe inelastic demand.

d. Describe unit elastic demand.

e. Explain when demand would be perfectly elastic.

f. Explain when demand would be perfectly inelastic.

g. Explain how price elasticity of demand affects the relationship between price and total revenue.

B. Cross elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good.

a. State the formula for calculating cross elasticity of demand.

b. Explain how cross elasticity of demand is used.

C. Price elasticity of supply measures the responsiveness of quantity supplied of a good to a change in the price of that good.

a. State the formula for calculating price elasticity of supply.

b. Describe elastic supply.

c. Describe inelastic supply.

d. Describe unit elastic supply.

e. Explain when supply would be perfectly elastic.

f. Explain when supply would be perfectly inelastic.

g. Explain how price elasticity of supply changes over time.

D. The laws of supply and demand determine who actually pays a tax.

a. Describe the conditions under which consumers will pay the full tax.

b. Describe the conditions under which producers will pay the full tax.

c. Explain how the government can maximize tax revenues.

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Microeconomics: Describe elastic demand
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