ECON 545(DEVRY) help A Clearer path to student success/uophelp.com ECON 545(DEVRY) help A Clearer path to student suc | Page 29

2.
Expectations Determinant in which you need to use data
estimating future market conditions.
b.
(20 points) Price Elasticity of Demand facing you in
your scenario, including actual calculation of it using the
midpoint formula. If you can’t find data, then determine the
Price Elasticity from the Characteristics and make up
numbers to use. Be sure to identify this if you use this
approach. This will help you in deciding the slope of your
Demand curve below.
c.
(10 points) Graph the Demand facing your situation.
Note that this requires information from the Supply
Determinant analysis before deciding how to draw the
curve(s), as you may need a separate MR curve.
Supply Determinants:
a.
Each individual determinant analyzed for your
situation, with examples applicable to your situation (5
points each) and research (3 points each) showing current
Supply data or most recent past data, except for the
Expectations Determinant in which you need to use data
estimating future market conditions.
i.
(40
points) You need to be very specific in the Cost of
Production Determinant to identify Fixed, Variable,
and Marginal Cost in order to derive your Supply
curve for the graphing component. You will need to
explain and show how Profit Maximization or Loss
Minimization output and price are determined. You
will need to do the math using actual figures [cited] or
your own estimated figures [identified as such] and
explain why you expect Short Run Economic or
Normal Profits, Acceptable Loss or temporary Shut
Down and how you will know which it is.
ii.
The
Number of Sellers determinant must contain your