Assignment
Details:
Price elasticity of demand measures consumers' responsiveness to changes in the price of a good. There are a number of variables that affect consumers' decisions, among them the following:
The availability of substitutes
The specific nature of the good
The part of income spent on the good
The time consumers have to buy the good
Draw on your experiences as a consumer and your Unit 2 readings to address the following 4 topics. Make sure you use economic concepts in your main contribution.
Choose a product that you have purchased in the past 1-3 months from a clothing or shoe store.
Describe how each of the 4 factors listed above contributed to the elasticity of the good.
Is the product considered elastic, inelastic, or unitary elastic?
What effect does the current supply and current demand have on this product?
Deliverable Length: 200 words (minimum)
Reading Assignment
Read the following chapters from the Microeconomics textbook:
• Chapter 2
o Demand, pp. 19-20
o Supply, pp. 16-17
o Equilibrium, p. 21
• Chapter 3
o Elasticity of Demand, pp. 27-31
o Elasticity of Supply, pp. 31-32
o Perfectly elastic, Perfectly inelastic, pp.30-31
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.