Learning Goal: I’m working on a international economics writing question and need an explanation and answer to help me learn.Question 1.Discussion Question : 1-2 pages with conclusion & 3 references needed ( citations for your explanation in paragraph) Question 2.Professional Assignment #1 – develop a 5- to 6-page response(with conclusion & 6 reference papares) in 7th edition – APA format using the following three-question prompt Both 1 & 2 questions should be individually answered.Reading: Chapter 3: Quantitative Demand Analysis (14 pages)Selected Readings Houthakker, H., and Taylor, L., Consumer Demand in the United States: Analyses and Projections, 2nd ed. Cambridge, MA: Harvard University Press, 1970Video: Introduction to price elasticity of demand | APⓇ Microeconomics | Khan Academy. (2018, November 15). [Video]. YouTube. Question 1:Discussion QuestionCLO #1 – Describe how goals, constraints, incentives, and market rivalry affect economic decisions.CLO #2 – Analyze demand, supply, equilibrium prices, and price elasticities as a quantitative tool to forecast changes in revenues.Recently, Verizon Wireless ran a pricing trial in order to estimate the elasticity of demand for its services. The manager selected three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. One week later, the number of customers enrolled in Verizon’s cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. The manager used this information to estimate the own price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company’s 2020 annual revenues. One year later, the manager was perplexed because Verizon’s 2020 annual revenues were 10 percent lower than those in 2019—the price increase apparently led to a reduction in the company’s revenues. Did the manager make an error? Explain. (Problems and Applications end of Chapter 3)Question 2:Module 4Reading: Chapter 4: The Theory of Individual Behavior (12 pages)Video: Behavioral theory | Behavior | MCAT | Khan Academy. (2013, September 17). [Video]. YouTube. Professional Assignment #1CLO #1 – Describe how goals, constraints, incentives, and market rivalry affect economic decisions.CLO #2 – Analyze demand, supply, equilibrium prices, and price elasticities as a quantitative tool to forecast changes in revenues.Using the graph below, develop a 5- to 6-page response(with conclusion & 6 reference papares) in 7th edition – APA format using the following three-question prompt: Question 1What is the maximum amount you would pay for an asset that generates an income of $250,000 at the end of each of five years if the opportunity cost of using funds is 8 percent?Question 2Suppose the supply function for product X is given by Qxs = −30 + 2Px − 4Pz. (LO1)How much of product X is produced when Px = $600 and Pz = $60?How much of product X is produced when Px = $80 and Pz = $60?Suppose Pz = $60. Determine the supply function and inverse supply function for good X. Graph the inverse supply function.Question 3Suppose the own price elasticity of demand for good X is −5, its income elasticity is −1, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 3. Determine how much the consumption of this good will change if: The price of good X decreases by 6 percent.The price of good Y increases by 7 percent.Advertising decreases by 2 percent.Income increases by 3 percent.Question 4A consumer is in equilibrium at point A in the accompanying figure. The price of good X is $5. What is the price of good Y?What is the consumer’s income?At point A, how many units of good X does the consumer purchase?Suppose the budget line changes so that the consumer achieves a new equilibrium at point B. What change in the economic environment led to this new equilibrium? Is the consumer better off or worse off as a result of the price change?
Requirements: For question -1( 2pages) & for question -2 (5-6pages) | .doc file
