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Essay Instructions: Assignment Question

Choose two products – one with price elastic demand, one with price inelastic demand. Using the determinants of price elasticity explain why demand for one is price elastic and demand for the other is price inelastic. Comment on the implications for total revenue of the type of elasticity of your products.

Essay Instructions: Products, Services, and Prices in the Free Market Economy
Assume that one of the team member?s organizations, or an organization with which the team is familiar, has to make a decision related to increasing or decreasing the price of a good or service that it sells. Given that the ultimate objective is to increase the company?s revenue, how would you use price elasticity of demand to determine whether to increase or decrease the price? In a 700-1,050-word APA-formatted paper, justify your conclusion. Now think about the concept of income elasticity of demand. If the incomes of the customers for this good or service were to increase by 10%, would you expect the demand for it to increase by more than, less than, or about 10%? Why?
Visit the University of Phoenix Library, click on Company Directories and Financials, and select a database. For the purpose of this exercise, please select Marketline Business Information Center. You may also expand your research on the Internet to identify problems experienced by organizations operating in your industry.

Essay Instructions: Principles of MicroEconomics

An article in the Wall Street Journal noted the following: "Instead of relying on a full coach, round trip unrestricted fare of about $2,000.00 between Cleveland and Los Angeles...continental Airlines since June has offered a $716.00 unrestricted fare in that market..Through October, the test resulted in about the same revenue that Continental thinks it would have collected with its higher fare." Source: Scott McCartney, "Airlines Try Cutting Business Fares, Find They Don't Lose Revenue" Wall Street Journal November 22, 2002

Answer the following in essay form:
a) Using your knowledge of the relation between the total revenue and the price elasticity of demand, explain, what would would be the absolute value of the price elasticity of demand on this airline route?
b) Is it possible for Continental Airlines to change their fares (in either direction) so the company would make more money on this airline route? Explain your reasoning.

Essay Instructions: There are 4 factors that influence the price elasticity of demand:

?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
In a 2?4 paragraph Discussion Board post, discuss the following:

?Choose a product you have purchased in the past month from a clothing or shoe store.
?Describe how each of the 4 factors contributed to the elasticity of the good.
?Is the product considered elastic, inelastic, or unitary elastic?
?In a few sentences, what effect does the current supply and current demand have on this product?
?Comment on another student?s posting.