ECON 545(DEVRY) help A Clearer path to student success/uophelp.com ECON 545(DEVRY) help A Clearer path to student suc | Page 38

b. (20 points) Price Elasticity of Supply you have based on the
Cost of Production changes as output changes, 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 Supply curve.
c. (10 points) Graph your Supply situation using the numbers
from your earlier Cost of Production analysis.
3. Recommendations—(40 points) what are your recommendations
explained by your analysis?
4. Paper presentation—(10 points) good format, citations, lack of
spelling errors, etc.
Situation A
Jenny, your niece, is a smart high-school student who wants to make
intelligent choices for her future. Hearing of your course in business
economics, she has e-mailed you asking for advice on whether to
become a doctor and on the best location to practice it. She recognizes
the high costs of tuition and the years of study involved in becoming a
doctor. She wants to evaluate if that career choice is an optimal decision
for her, so she has asked you for advice.
Having read the piece “Fewer Physicians Move, a Sign of Career
Caution” on page 20 of the textbook, you recognize the significance of
such a career decision for Jenny. You decide to educate yourself about
the market for physicians in terms of supply and demand, elasticity,
costs of production, pricing, and economic or normal profit or loss. You
want to provide Jenny with the most informed advice possible.
Situation B