Paper , Order, or Assignment Requirements

1 PAGE PER DISCUSSION QUESTION. PLEASE USE TEXT AS A REFERENCE

Week 1

Circular Flow Diagram

Explain how the circular flow diagram relates to the current economic situation. Using the circular flow diagram, explain a way that your family interacts in the factor market and a way that it interacts in the products market.

Guided Response: Review the discussion board posts of your classmates. Respond to at least two of your classmates and comment on their descriptions of the circular flow diagram and factors of production. Discuss how circular flow relates to current economic situations.

Supply and Demand

Analyze how the law of demand applies to a recent purchase that you made. Describe how the product has changed in price and explain whether the price change is due to supply or demand. Did the change in price affect your decision to purchase the item?

Guided Response: Review the discussion board posts of your classmates. Note their analysis of a recent purchase and respond to at least two of your classmates. In your responses, discuss the effects of a price change and how it might alter your decision to make a purchase, according to the determinants of supply or demand.

Week 2

Elasticity

Analyze the determinants of the price elasticity of demand and determine if each of the following products are elastic or inelastic:

• Bottled water
• Toothpaste
• Cookie dough ice cream
• Fresh green beans
• Gasoline

In your analysis, please make sure to explain your reasoning and relate your answers to the characteristics of the determinants of the price elasticity of demand.

Externalities

Explain the difference between a positive and negative externality. In your analysis, make sure to provide an example of each type of externality. Why does the government need to get involved with externalities to bring about market efficiency? What solutions need to be provided for your examples?

Guided Response: Review the discussion board posts of your classmates. What are some of the key differences between positive and negative externality? Respond to at least two of your classmates. Analyze the solutions your classmates offered and compare them to your own. Provide advice to your classmates’ solutions for making the market more efficient.