Section 1:

Price elasticity of demand measures how sensitive consumer demand and the firm's revenues are to changes in the product's price.

Explain the difference between a product with elastic demand and a product with inelastic demand. Provide an example of each.

Section 2: The Ethics and Economics of Surge Pricing

Uber and Lyft have changed the way local taxi service operates. Using independent drivers and driver-owned vehicles, both companies serve as middlemen using digital technology to provide on-demand transportation services to consumers. Nevertheless, Uber and Lyft customers often complain about the practice of "surge" or "prime-time" pricing used by these companies during periods of peak demand. From a classical economics perspective, this form of dynamic pricing makes sense based on supply and demand relationships. Fare increases in periods of high demanda shift in the demand curve to the rightin turn increase the supply of drivers available for passengers.

From an ethical perspective, supporters of surge or prime-time pricing argue from a utilitarian view that this type of pricing increases the supply of drivers and more people get a ride. Remember from Chapter 3 that utilitarianism focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the behavior, in this case, dynamic pricing. Critics of surge or prime-time pricing argue that this practice is flagrant price gouging by Uber and Lyft.

Question: Based on the understandingof surge pricing strategy employed by many businesses.

Where do you stand on the economics versus ethics debate related to surge or prime-time pricing? Be specific

Section 3:

Based on the understanding of the differences between supply chain management and marketing channels.

How would you characterize the differences and why is it important to marketing? Provide an example of an organization with a responsive supply chain and an example of an efficient supply chain.

Textbook: MARKETING: THE CORE, EIGHTH EDITION