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Elasticity

Unit I introduced the benefits of markets to improving outcomes for producers and consumers. Unit II examined the role of costs and prices in decision-making. Answer a series of questions in the form of an essay. Support your answers with research from at least three peer-reviewed journal articles using the CSU Online Library (or other sources).

1. Research elasticity information for two particular goods: one with an elastic demand and one with an inelastic demand. Using elasticity information you gather, predict changes in demand. The United States Department of Agriculture website has a good resource to help with this.

2. Describe how marginal analysis, by avoiding sunk costs, leads to better pricing decisions.

3. Explain the importance of opportunity costs to decision-making and how opportunity costs lead to trade.

4. Evaluate how better business decisions can benefit not just the producer but the consumer and society as a whole. In your evaluation, contrast the deontology and consequentialism approaches to ethics.

Your essay must be at least three pages in length (not counting the title and references pages) and include at least three peer-reviewed resources.