Good Day, can you select a topic on the below? I need 4 pages with references please. Instructions...

Question

Good Day, can you select a topic on the below? I need 4 pages with references please. Instructions below.

For the first week, I will let you choose your Topic Paper subject with the caveat that it is related to the assigned reading for the week, i.e. something on demand, supply, elasticity, or a related topic.

When writing the Week 1 Topic Paper, keep in mind that Managerial Economics is a quantitative discipline. Your paper will be its strongest and the score its highest if you use the Week 1 reading material to 'analyze' the topic chosen. Ensure that your paper utilizes our material, but does not simply restate it.

David · Accepted Answer

Running Head: Elasticity  1 

Elasticity of Demand 
Author’s Name 
Affiliation
Elasticity  2 
 
Introduction 
Elasticity of demand determines the responsiveness to change in demand due to change 
in the price of good. It is one of the important rule of criteria for determining the reasons for 
change in demand of any good. The goods might be having higher price elasticity of demand or 
lower elasticity of demand which in turn sets the basis for defining their category in terms of its 
relative importance for the consumers in the market. It depends on external factors like ease of 
availability, substitutability with other goods, finally the proportion of budget spent over this 
particular good, etc. The paper will discuss the importance of elasticity for the managers and 
defines the relationship between marginal revenue and elasticity, understanding the type of good 
depending on its elasticity for the consumer, etc.
Formula for calculating the price elasticity of demand 
There are different ways to calculate the price elasticity of demand such as percentage method, 
arc elasticity measure, and point elasticity of measurement, etc. 
Price elasticity of demand = (Percentage change in quantity demanded) / (Percentage change in 
price)
In the above formula, ΔQ is the change in quantity demanded; ΔP is change in price of the good, 
Q is the initial quantity and P is the initial price. 
For example, it can be find out as follows:- 
Elasticity  3 

The point elasticity of demand refers to the elasticity computed at different points on the demand 
curve. Highly elastic demand is represented by the upper most region of the demand curve where 
elasticity is more than one whereas the bottom part of the demand curve represents inelastic 
portion of demand having less than 1. Therefore, demand is highly elastic in case the price 
elasticity is more than unity. It is inelastic in case the value lies between unity and 0. It is unit 
elastic if the value is exactly one (Varian, 2009). 
Practical example 
Ed = (% change in quantity demand)/(% change in price) 
 -1.5*-5 = % change in Qd 
 7.5 = % change in Qd 
100 + 7.5 
 107.5 = New Qd 
Elasticity  4 
 
 Increase in consumer surplus = ½*(207.5)*1 = 103.75
Cross-elasticity of demand 
The cross-price elasticity of demand refers to the percentage change in the demand of one good 
when there is particular per cent change in the price of another good.

Good Day, can you select a topic on the below? I need 4 pages with references please. Instructions below. For the first week, I will let you choose your Topic Paper subject with the caveat that it is...

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