Below is a short passage on Elasticity, costs and Customers. At the end of the passage, some questions are given.

Assignment :( 30 points)
1. You will need to create a short tutorial video (YouTube or MP4) not more than 5-8 min long and using your critical thinking and communication skills help your class/audience understand what this passage is talking about.
2. Make sure that within your video you are responding to the 5 questions that have been asked at the end of the passage. 

3. Students need to submit a video featuring themselves clearly visible and professionally attired, as if teaching a class. You can use a white board to demonstrate the article and your answers, you can point the camera at your notebook with your graphs as well. 

You can create a short YouTube video, or an MP4 file once your video is made, please share the link with your instructor through the blackboard drop box.

 

 

Based on the passage above please make sure that you are responding to the following questions in your video:                                                                                                          

1. Based on your reading of Chapter 5: Elasticity, and the article above, what factor would you think determines how firms can pass on costs or retain profit shares from sales of a product when key input prices fluctuate?

2. The article above mentions the product Aspirin and Coffee.
a) Is Aspirin likely to have an elastic or inelastic Demand Curve?
b) Is Coffee likely to have an elastic or inelastic Demand Curve?

3. Looking at the Figure above, what do you conclude:
Which demand curve, elastic or inelastic, is more beneficial to consumers in terms of Price decrease? Why?

4. Looking at the Figure above, what do you conclude:
Which situation could lead to a fall in sales revenue for producers with the discovery of new technology? Why are producers still inclined to implement new technology in the production process?

5. Since the demand for food is generally inelastic, which of the two graphs would you apply to the market for agricultural products? Please explain what would happen to prices and quantity
a) if there is a surge in production
b) Due to poor weather or other factors supply of crops decreases.