Need help? We are here

Professional Assignment #1 CLO #1 – Describe how goals, constraints,


Professional Assignment #1

CLO #1 – Describe how goals, constraints, incentives, and market rivalry affect economic decisions.

CLO #2 – Analyze demand, supply, equilibrium prices, and price elasticities as a quantitative tool to forecast changes in revenues.

Using the graph below, develop a 2- to 4-page response in APA format using the following four-question prompt: 

Question 1

What is the maximum amount you would pay for an asset that generates an income of $250,000 at the end of each of five years if the opportunity cost of using funds is 8 percent?

Question 2

Suppose the supply function for product X is given by Qxs = −30 + 2Px − 4Pz. (LO1)

  • How much of product X is produced when Px = $600 and Pz = $60?
  • How much of product X is produced when Px = $80 and Pz = $60?
  • Suppose Pz = $60. Determine the supply function and inverse supply function for good X. Graph the inverse supply function.

Question 3

Suppose the own price elasticity of demand for good X is −5, its income elasticity is −1, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 3. 

Determine how much the consumption of this good will change if: 

  • The price of good X decreases by 6 percent.
  • The price of good Y increases by 7 percent.
  • Advertising decreases by 2 percent.
  • Income increases by 3 percent.

Question 4 

  • A consumer is in equilibrium at point A in the accompanying figure. The price of good X is $5. 
  • What is the price of good Y?
  • What is the consumer’s income?
  • At point A, how many units of good X does the consumer purchase?
  • Suppose the budget line changes so that the consumer achieves a new equilibrium at point B. What change in the economic environment led to this new equilibrium? Is the consumer better off or worse off as a result of the price change?

Table of Contents

Calculate your order
Pages (275 words)
Standard price: $0.00

Latest Reviews

Impressed with the sample above? Wait there is more

Related Questions

Apply Neuman Systems Model.

The Ebola virus made significant impacts upon West African countries. Discuss the difficulty epidemiologists and health professionals have encountered in controlling this disease. What are

Anthropology of Food: Food Foraging Paper

Premium Paper Help is a professional writing service that provides original papers. Our products include academic papers of varying complexity and other personalized services, along

Role of advanced practice nursing

Based on last week’s reading, you now have an idea of the role of the APRN, and legal/professional issues in prescribing. As a future nurse

Aspect of social media use

Present the PowerPoint presentation designed in Assignment 3.  As a reminder, the content should focus on some aspect of social media use in the workplace. 

New questions

Don't Let Questions or Concerns Hold You Back - Make a Free Inquiry Now!