Short essay writer
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In a 2 to 3 page short critical economic thinking essay of a minimum of 400 words and a maximum of 600 words (penalties applied if below the minimum or above the maximum based on how close to the minimum or maximum is involved), thoughtfully respond to the questions or directives below based on the provided scenarios (do not include the scenarios or questions/directives in your essay).
First Scenario: For most business firms that sells a particular good on the market, a decision has to be made from time-to-time to either raise the price of the good, lower the price of the good, or keep the price of the good unchanged.
Based only on the concept of demand elasticity:
When would you recommend raising the price of the good? Explain why.
When would you recommend lowering the price of the good? Explain why.
When would you recommend keeping the price of the good unchanged? Explain why.
Second Scenario: Having become a “master of elasticity” due in large part to taking a course in microeconomics from world famous Indiana Tech University, you are hired as a consultant to a firm that is currently considering raising the price of its product in the hopes of earning a higher profit. Reviewing the firm’s books and the overall market for the product, you have calculated that the price elasticity of demand for the firm’s product is -1.05.
Based on your calculation:
A. What advice will you give regarding the proposed price increase, and how will
you explain your advice so the firm’s leadership understands the rationale of
your advice?
Third Scenario: The government has decided to increase the basic business tax of all firms by 5%. Once again, you are hired as a consultant to a firm, but this firm cannot pass along the cost of the tax increase to its customers by way of a price increase of its product because most customers will significantly reduce their purchases.
Based on what you have learned in your study of microeconomics:
A. Set forth and describe 2 general courses of action (that could be applied to any firm) you
believe would be helpful to the firm in cutting costs to help absorb the tax increase and not
suffer any net losses.
Specific Paper Requirements:
1. 2 to 3 pages in length consisting of a minimum of 400 words and a maximum of 600 words in the body of the essay. The Title Page and References Page do not count in meeting the word requirement.
2. Must have a Title Page that includes:
a. Title of Paper
b. Student Name
c. Institution Name (use: Indiana Tech University)
d. Date Submitted
3. Since the paper is very short, Do Not include an Abstract or Author’s Note, etc., at the beginning of the paper.
4. The entire paper (includes the Title Page and References Page) must be written and formatted according to APA style. See the APA section under the Course Syllabus tab for access to the APA style manual and sample papers. The Purdue Owl Sample paper is the best one to use along with the manual to assist your formatting efforts.
5. In addition to the textbook, a minimum of 2 other scholarly resources must be used and properly cited per APA style in both the body of the paper and the References page.
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