Microeconomics Tools for Purposes of Problem solving, Analysis, and Decision Making
Examine microeconomic tools for purposes of problem solving, analysis, and decision-making.
It is highly recommended that you review the Seminar presentation located in the “Learn” area before beginning the Assessment. https://kapextmediassl-a.akamaihd.net/business/Media/GB540/GB540_1504D/GB540U2SP/presentation_html5.html
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 your responses using empirical examples, formulas, and graphs.
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?