Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prices are the driving force behind every buying and selling decision in a market economy. Prices are determined by the supply and demand equilibrium and

Prices are the driving force behind every buying and selling decision in a market economy. Prices are determined by the supply and demand equilibrium and are influenced by the price elasticity of demand and supply of goods and services.

For this discussion, first play the simulation game Competitive Markets in the MindTap environment. Then, you will share your experiences playing that game. Your work in this discussion will directly support your success on the course project.

  • Based on the outcome of the simulation, was the sale price you set the same as the equilibrium price? Refer to the supply and demand model to explain why they might be different.
  • Imagine that you own your own business. How would price elasticity of demand impact the pricing decisions of your business?
  • What are the determinants of price elasticity of demand? Identify at least three examples.
image text in transcribedimage text in transcribedimage text in transcribed
SELLER - Market Closed My Summary Orders Transactions Unit Cost Price Profit $0.50 $0.90 $0.40 W N A $0.75 $1.00 -- Total Profit: $0.40\fSELLER - Market Closed My Summary Orders Transactions # Price Buy Bid# Sell Bid# Time $0.89 21 18 00:33 $0.62 26 27 00:39 Va U $0.87 36 30 00:47 8 $0.96 37 19 00:48 $0.98 42 14 00:53 10 $1.12 47 24 01:00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sociology Of Economic Innovation

Authors: Francesco Ramella

1st Edition

1317621344, 9781317621348

More Books

Students also viewed these Economics questions

Question

Summarize the findings of behavior therapy outcome research.

Answered: 1 week ago

Question

2. Information that comes most readily to mind (availability).

Answered: 1 week ago