Weekly Article

It's Monday...and you know what that means.  Find yourself an article relating to economics, read it, understand it and evaluate it in writing as your next blog post  Be sure to include the link to the article along with one relevant picture.

Weekly Reading Assignment

It's Monday...and you know what that means.  Find yourself an article relating to economics, read it, understand it and evaluate it in writing as your next blog post  Be sure to include the link to the article along with one relevant picture.

Elasticity - Should We Raise the Price?

This assignment has two components:

First, write a brief explanation of what elasticity is and how it works.

Secondly, create your own example of price elasticity of demand (the same as we have worked with in class this week.)  Create a brief scenario, draw a graph to illustrate the question, calculate (show your work) the % changes in price and quantity demanded.  Then calculate the price elasticity for your product, calculate the change in total revenue that would occr from the change in price and explain wheter the price should be changed as indicated in your scenario.  Be sure to include the graph and all formulae and your calculations.  Also include one picture which relates to the topic or your scenario. 

Supply and Demand in the Stock Market

Trading stocks is an exercise in supply and demand.  Why does the price fluctuate throughout each hour of trading?  The relatively scarce supply of that company's shares allow for a starting price based on a variety of factors.  From that point forward, the price rises and falls as shares are bought and sold.  What makes a stock valuable? What inspires the purchase of a stock? 

http://breakoutreport.com/articles/economics/supplydemand.htm

Read the article linked above and write a short explanation of how supply and demand affect the sale of stocks.  Your answer should be 2-3 paragraphs in length and include two pictures relating to the topic.