Assignment 1: Economics
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Save this file in your course folder, and name it with Assignment, the section number, and your first initial and last name. For example, Jessie Robinson’s assignment for Section 1 would be named Assignment1JRobinson.
Type the answers to the assignment questions below. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment. At the end of each day, be sure to save your progress.
Review Lesson 4 of the Course Overview for instructions about turning in your assignments.
In Section 1, you learned about economic principles. Now, you’ll apply what you learned.
1. Choose a well-known company that you know of, and answer the following questions about it:
a. Is this mainly a product-based or service-based business? (1.0 points) it is mainly a product based company.
b. What type of good or service is this company best known for? (1.0 points it is a food service company so it is known for the food.
c. What makes the company different from its competitors? (1-3 sentences. 3.0 points) this company is known for there quality of fast food. The food is prepared much more fresh than other companies much like this one. This company also tends to have more of a range of foods to pick from.
d. Why do you think this company became successful? Describe at least one reason. (1-5 sentences. 2.0 points) I think this company became successful because it was not the first company like it and people like to be able to grab something quickly and go so fast food works well.
2. Choose a different well-known company that you know of, and describe its direct and indirect competitors. Describe at least 2 direct competitors and 2 indirect competitors. (1-5 sentences. 4.0 points) a indirect competitor would be for example if someone opens a shop selling Malay rice while the opposite street another person is selling the same rice but then comes along a person selling Chinese fried rice. Although the person who is selling the Chinese fried rice and the two other competitors are selling Malay rice, the person selling the Chinese fried rice is considered an indirect competitor. But for another example a pizza shop in competition wit a fried chicken shop would be indirect because the products are not the same but they are still competing for sales.
3. Describe at least 3 nonprice competition strategies a company could use to convince customers that its product is better than other similar products. Why would those strategies matter to customers? (1-6 sentences. 3.0 points) It is better quality so it will last longer, it has a better warranty in case anything goes wrong, it functions or looks better than the opposition, the design is future projected. They would matter to the customers because customers care about the quality of whatever product it is they are possibly thinking about investing in. customers also don’t want things that are going to out of date in a year. And of course the customer is going to purchase the product depending on how much better they think it is in general including the appearance of the product.
4. Describe a real or made up but possible example of a product that went through a time of scarcity. What was likely to happen to the price of the product when it was scarce, and why? (1-3 sentences. 3.0 points) alcohol during the prohibition. The price skyrocketed. As the penalties for breaking the law increased, so did the demand and price.
5. Describe a product you know of that has elastic demand. Why is the demand for this product elastic? Explain. (1-3 sentences. 3.0 points) a stock in a micro cap company or a gas pharmaceutical company. Its factors are that the government proposing a law that is in favor of te industry, media, and just regular speculation.