Alabama State University Demand & Increasing Revenue Discussion

1. 1200 words total, 3 APA cited references and reference list. No plagiarism please!
In a narrative essay demonstrate your understanding of elasticity by

• Identifying the determinants of price elasticity of demand
• Describing the effect of a price increase on the total revenue for
  • (i) goods or services with price elastic demand
  • (ii) goods or services with price inelastic demand
• Explaining how the relative elasticities of demand and supply determine who bears the greater burden of a tax

Continue demonstrating your understanding of course material by

• Identifying examples of normal and inferior goods and discussing what could be the relevant income elasticity of demand coefficients for each
• Describing the market harming effects price ceilings have on producer surplus and total welfare. Explain how price ceilings can even harm consumer surplus.

  2. 250 words total. 2 APA cited references and reference list. No plagiarism!
  Assume that you are the manager of a business and you are thinking about changing the prices you charge for your goods/services to increase your revenue and profits. Discuss whether you think you should increase or decrease the prices you charge to increase your revenue. You may use examples of specific goods or services in your explanation. (You are advised to make use of the concept of price elasticity of demand to answer this question.)