Good Morning can you Help me this home work? Write a three to four (3-4) page pa

Question

Good Morning can you Help me this home work?

Write a three to four (3-4) page paper in which you:

Identify at least four (4) key points of a relevant economic article from either the Strayer Library or a newspaper. The article must deal with any course concepts covered in Weeks 1-8.

Apply one (1) of the following economic concepts (supply, demand, market structures, elasticity, costs of production, GDP, Unemployment, inflation, aggregate demand, and aggregate supply) to the key points that you highlighted in Question 1.

Explain how the concept that you identified in Question 2 could affect the U.S. economy.

In your concluding paragraph, state whether you agree or disagree with the economic article identified in Question 1. Provide a rationale for the response.

Use at least three (3) quality resources in this assignment with one (1) being your article.

Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

Analyze the dynamics of supply and demand to anticipate market equilibrium.

Analyze the elasticity of demand and supply and its importance, and the effect of taxes or other public policies.

Describe the impact of various forms of competition on business operations with emphasis on perfect competition.

Use technology and information resources to research issues in principles of economics.

Explanation / Answer

1. Market supply refers to supply of a commodity by all the firms in the market. For instance, Firm A is willing to sell 100 units of commodity and firm B is willing to sell 200 units of commodity and if there are only 2 firms producing this particular commodity, market supply will be 300 units. Sum total of the firms producing a particular commodity is called industry. Market supply curve is a supply curve of the industry as a whole. Market supply schedule is a table showing different amounts of commodity that the sellers or firms are willing to sell corresponding to different possible prices in the market.
Market demand refers to the sum total of demand for a commodity by all the buyers in the market. Market demand schedule is a table showing different amounts of commodity that the buyers are ready to buy corresponding to different possible prices of the commodity.
Market equilibrium is a situation of the market in which demand for a commodity is exactly equal to its supply, corresponding to a particular price. Thus, in a state of equilibrium, the market clears itself, as market demand is equivalent to market supply of a commodity. There is neither excess demand nor excess supply. In such situation, the price that prevails in the market is called equilibrium price, quantity supplied/demanded is called equilibrium quantity.
New equilibrium is struck where demand curve shifts to the right or left. When demand curve shifts to the right, demand > supply, corresponding to the existing price. This is a situation of excess demand. This causes increase in price. Thus, quantity demanded tends to decline and quantity supplied tends to rise. This process of declining of quantity demanded and rising of quantity supplied will continue till such a price is reached where quantity demanded = quantity supplied which is the new point of equilibrium.
When the demand curve shifts to the left, it shows decrease in demand. This causes fall in price. As a result, quantity demanded tends to increase and quantity supplied tends to decrease. This process will continue till such a price is reached where quantity demanded is equal to quantity supplied. This occurs at the point of new equilibrium.
On the other side, when supply curve shifts to the right, there is increase in supply. It implies a situation of excess supply. This causes fall in price. As a result, demand will extend and supply will contract. This process of extension of demand and contraction of supply would continue till such a price is reached where quantity demanded is equal to quantity supplied. This occurs at the point of new equilibrium.
When supply curve shifts to the left, there is decrease in supply. This causes a situation of deficiency of supply. As a result, price tends to rise. With this, demand tends to contract and supply tends to extends. This process of contraction of demand and extension of supply will continue till such a price is reached where quantity demanded is equal to quantity supplied. This causes new equilibrium point.
2. There are five cases of elasticity of demand :
a) Perfectly elastic demand : It refers to a situation when demand is infinite at the prevailing price. It is a situation where the slightest rise in price causes the quantity demanded of the commodity to fall to zero.
b) Perfectly inelastic demand: In this situation, change in price causes no change in quantity demanded. Here, the elasticity of demand is zero.
c) Unitary elastic demand: Rise or fall in price of a commodity makes no change in its total expenditure, in this case, the elasticity of demand is unitary.
d) Greater than unitary elastic demand: With fall in price of a commodity, total expenditure increases and with rise in its price, total expenditure decreases, then demand for a commodity is greater than unitary elastic.
e) Less than unitary elastic demand: With a fall in price, total expenditure decreases and with rise in its price, total expenditure increases, then demand for that commodity is less than unitary elastic.
There are two extreme cases of elasticity of supply:
1. Zero elasticity of supply: It refers to a vertical straight line supply curve, showing constant supply, no matter what the price is.
2. Infinite elasticity of supply: It refers to a horizontal straight line supply curve, showing infinite supply corresponding to a particular price of the commodity. Even a minute change in price will cause an infinite change in quantity.

Excise tax is a tax on the production of goods & services. It is levied per unit of production of a firm. Accordingly, marginal and average costs of producer is raised. In such a situation, a producer is willing to sell less at the existing price, or he will sell the same quantity only at a higher price. This either causes decrease in supply or backward shift in supply curve.
3. Perfect competition is a market with a large number of sellers and buyers. Homogeneous product is sold and a uniform price prevails in the market. Price is determined by the forces of market demand and supply. When there is perfect competition, a firm is a price taker. AR as well as MR is constant. Because of constant MR, TR increases at a constant rate. A firm's TR starting from the origin, is a straight line moving upward. Accordingly, profit is maximum where AR = MR. There are no selling costs under perfect competition as it faces a horizontal straight line demand curve. It can sell whatever amount it wishes to sell at the existing price. A firm can enter or leave any industry. There is no legal restriction on entry or exit.

On the other hand, monopoly is a market in which there is a single seller of a product with no close substitutes. Single producer and large number of buyers of the product.

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