One of the topics you learned about economics in this first module is price elas

One of the topics you learned about economics in this first module is price elasticity of demand. This is an important topic to you as a new entrepreneur because it will help you to price your products appropriately. This is because a change in price affects the demand of the product. Some companies assign a lower cost to a new product for a short period of time and then bump up the price when the introductory period is over, which impacts demand for the product.
In a 2- to 3-page paper, explain the economic concept of elasticity of demand. In addition, answer the following four questions as they pertain to your business venture.
What will happen to demand for the new product when the price is raised by 5%?
Is there an impact on the demand for your product if the introductory period is too short?
How large a reduction in price of a product is required to increase sales by 25 percent?
Besides elasticity of demand, what other economic and noneconomic forces might occur over time in the global market’s reception to your new product?
Keys to the Assignment
Explain your analysis using terminology and concepts introduced in this module.
Cite all sources and provide a reference list using APA format.
Proofread and edit the paper. The goal is zero errors.
Submit your paper to the dropbox by the due date for this module.
Videos
Byerly, N. (2020, July 31). Difference between fixed and variable costs [Video]. YouTube. https://www.youtube.com/embed/iUe_T8ufr-A
Crashcourse. (2019, August 14). Who even is an entrepreneur? [Video]. YouTube. https://www.youtube.com/embed/aozlwC3XwfY
Success Secrets TV. (2018, August 15). 9 signs you were born to be a successful entrepreneur [Video]. YouTube. https://www.youtube.com/embed/Pblzq8zQq-s
TED-Ed. (2019, April 29). How does the stock market work? Oliver Elfenbaum [Video]. YouTube. https://www.youtube.com/embed/p7HKvqRI_Bo
Required Reading
Journal articles can be found in the Trident Online Library. Access the library from the TLC Portal page.
Chapter 4: Forms of Business Ownership in:
Gitman, L., McDaniel, C., Shah, A., Reece, M., Koffel, L., Talsma, B., & Hyatt, J. C. (2018). Introduction to business. OpenStax. Available in the Trident Online Library.
Jawad, M., Lee, J. T., Glantz, S., & Millett, C. (2018). Price elasticity of demand of non-cigarette tobacco products: A systematic review and meta-analysis. Tobacco Control, 27(6), 689. Available in the Trident Online Library.
Laverty, M. & Little, C. (2020). Entrepreneurship. OpenStax. https://openstax.org/books/entrepreneurship/pages/1-introduction. Creative Commons User License (CC 4.0).
Chapter 3: Demand and Supply in:
Taylor, T., Greenlaw, S. A., & Dodge, E. (2017). Principles of economics (2nd ed.). OpenStax. Available in the Trident Online Library.
Optional Reading
Robinson, P. B., & Gough, V. (2020). The right stuff: Defining and influencing the entrepreneurial mindset. Journal of Entrepreneurship Education, 23(2), 1-16. Available in the Trident Online Library.