In this paper you are asked to select some of the economic concepts covered in this class and apply them to a real world situation. The paper needs to be 4-6 pages in length and must use APA style citations. For help with APA style please see Purdue’s Online Writing Laboratory [http://owl.english.purdue.edu/owl/].
Please review the rubric before starting your paper. What is most important is your demonstration of accurate economic reasoning. You will want to pick a topic that is appropriate for the task. As regards APA style, what matters most is the use of ‘in-text’ citations for all external material you use e.g. (Author Year) or Author (Year) as well as a complete works cited section (not just weblinks). The other elements of APA style i.e. running header, abstract, etc. are unimportant.
Description: Take an issue from a recent news article related to material we cover in class. Provide detailed economic analysis of the issues in order to describe and then evaluate the situation. I recommend the Wall Street Journal, Businessweek, Forbes, or The Economist. This list is not comprehensive. Certainly other news sources business and non-business alike may have something worthwhile to write about.
My choice for the topic is supply and demand, the article can be about iphone apple upply and demand . the things that need to be in the essay and analyzed are : law of demand, the demand curve, diminshing marginal unity, the income effect, substitution goods, complementary goods, tastes and preferences, price elasticity of demand, the suppym curve, equilibrium price, perfect competition.
As an example: I might choose to write about the pricing changes made by Netflix and the resulting uproar from consumers. In this case I may choose to incorporate the following issues into my analysis: people respond to incentives, optimal decisions are made on the margin, changes in market equilibrium, price elasticity of demand, behavioral economics. My analysis might then express why economists might have been able to anticipate this outcome based on what we assume to be true about rational decision makers.