Professional Assignment #1
CLO #1 – Describe how goals, constraints, incentives, and market rivalry affect economic decisions.
CLO #2 – Analyze demand, supply, equilibrium prices, and price elasticities as a quantitative tool to forecast changes in revenues.
Using the graph below, develop a 2- to 4-page response in APA format using the following four-question prompt:
What is the maximum amount you would pay for an asset that generates an income of $250,000 at the end of each of five years if the opportunity cost of using funds is 8 percent?
Suppose the supply function for product X is given by Qxs = −30 + 2Px − 4Pz. (LO1)
Suppose the own price elasticity of demand for good X is −5, its income elasticity is −1, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 3.
Determine how much the consumption of this good will change if: