Principles of Economics and Entrepreneurship
One of the topics you learned about economics in this first module is
price elasticity of demand. This is an important topic to you as a new entrepreneur because it will help you to price your products appropriately. This is because a change in price affects the demand of the product. Some companies assign a lower cost to a new product for a short period of time and then bump up the price when the introductory period is over, which impacts demand for the product.
In a 2- to 3-page paper, explain the economic concept of elasticity of demand. In addition, answer the following four questions as they pertain to your business venture.
· What will happen to demand for the new product when the price is raised by 5%?
· Is there an impact on the demand for your product if the introductory period is too short?
· How large a reduction in price of a product is required to increase sales by 25 percent?
· Besides elasticity of demand, what other economic and noneconomic forces might occur over time in the global market’s reception to your new product?
Keys to the Assignment
· Explain your analysis using terminology and concepts introduced in this module.
· Cite all sources and provide a reference list using APA format.
· Proofread and edit the paper. The goal is zero errors.
· Submit your paper to the dropbox by the due date for this module.
For help writing papers, citing sources, proper referencing, and so forth, use Trident University’s
Introduction to APA-7th Edition
.
NOTE: You will need this assignment in Module 4 when you put your entire business plan together, so when your assignment is graded, be sure to make any corrections noted on the graded submission.
SLP Assignment Expectations
Your assignment will be evaluated using the criteria as stated in the SLP rubric. The following is a review of the rubric criteria:
Assignment-Driven: Does the paper fully address all aspects of the assignment? Is the assignment addressed accurately and precisely using sound logic? Does the paper meet minimum length requirements?
Critical Thinking: Does the paper demonstrate graduate-level analysis, in which information derived from multiple sources, expert opinions, and assumptions has been critically evaluated and synthesized in the formulation of a logical set of conclusions? Does the paper address the topic with sufficient depth of discussion and analysis?
Business Writing: Is the essay logical, well organized and well written? Are the grammar, spelling, and vocabulary appropriate for graduate-level work? Are section headings included? Are paraphrasing and synthesis of concepts the primary means of responding, or is justification/support instead conveyed through excessive use of direct quotations?
Effective Use of Information: Does the submission demonstrate that the student has read, understood, and can apply the background materials for the module? If required, has the student demonstrated effective research, as evidenced by student’s use of relevant and quality sources? Do additional sources used provide strong support for conclusions drawn, and do they help in shaping the overall paper?
Citing Sources: Does the student demonstrate understanding of APA Style of referencing, by inclusion of proper citations (for paraphrased text and direct quotations) as appropriate? Have all sources (e.g., references used from the Background page, the assignment readings, and outside research) been included, and are these properly cited? Have all sources cited in the paper been included on the References page?
Timeliness: Has the assignment been submitted to TLC (Trident’s learning management system) on or before the module’s due date?
