ECO 415 WEEK 1 COMPLETE,
ECO 415 WEEK 1 COMPLETE
ECO 415 Week 1 Basic Concepts Paper
Resource: Supply and Demand simulation located on your student website
Write a 1,050- to 1,400 word paper that discusses basic concepts in applied economics in the context of the simulation. Answer the following questions in the paper:
· How do changes in the business environment cause changes in supply and demand? Cite and explain at least two examples from the simulation.
· Why is marginal analysis used when making business decisions? How is marginal analysis used to respond to shifts in supply and demand? Cite and explain at least one example from the simulation.
· How did your team determine appropriate output levels in the simulation? Cite at least two examples. Were your team’s output decisions successful? If so, explain specifically how your decision making process led to financial success. If not, identify any mistakes and explain what your team could have done differently.
· What fixed and variable costs does the operating company in the simulation have? Cite at least two examples for each.
· Describe a market situation in which the operating company faces economic difficulties and the need to cut costs. What cost cutting strategies might the operating company use to remain profitable? What would be the benefits and drawbacks of each?
Format your paper consistent with APA guidelines.
ECO 415 Week 1 DQ 1
How does the law of demand relate to the price and demand for gasoline in the United States? Does this law accurately reflect reality? Use current research, personal experiences, and economic concepts to state your response.
ECO 415 Week 1 DQ 2
Why do you believe that it is important for managers to understand both short run and long run supply and demand? Cite one hypothetical or real life example that illustrates your response.