3-2: Problem Set

This assignment is intended to help you learn to do the following:

1) Analyze price and non-price factors of demand for a firm’s product or service.
2) Develop the concept of point and arc price-elasticity and determine the difference between elastic, inelastic, or unitary elasticity.
3) Examine the determinants of price elasticity and how price changes influence the level of total revenue.
4) Examine the determinants of income elasticity and cross-price elasticity and their impact on the demand for a product or service.

Action Items

1) Compose a Microsoft Word document or Excel File in which you:
2) Complete the Module 3 problem set  download .
3) Show all steps you used in arriving at your answer.
4) By the due date indicated, submit your Microsoft Word or Excel file so that the instructor can provide feedback. Do not submit your assignment in a PDF file or as a snapshot of a handwritten document of your solutions.
Grading Criteria

Each problem is worth 4 points.