Carlos Cruzs Price Elasticity Scenario Analysis

Home / News / Carlos Cruzs Price Elasticity Scenario Analysis

Carlos Cruz??™s Price Elasticity Scenario Analysis
Keisa Adorno Ramos
University of Phoenix
Economics ??“ Puerto Rico ??“ ECO/561PR
Prof. Jose Toral-Munoz
October 25, 2011
Carlos Cruz??™s Price Elasticity Scenario Analysis
After an exhausting evaluation of Carlos Cruz??™s Price Elasticity Scenario we could find various concepts that bring us a clear point of view, of what Mr. Cruz wants to do in his company. Carlos Cruz is an inventor; he formed his business at his house and wants to expand his company by the use of his invention. This invention gives the opportunity of enjoy reading books in a whole new way to some population sectors. He is digitalizing books but in addition he has created new tools and strategies for them to use while using his product. Basically, Carlos wants to have an excellent business approach, free time to enjoy his family life and be successful in the market he is pursuing.

In this particular case, Mr. Cruz must understand all the theories involve in the economics to obtain the results he wants to achieve. Every decision, every change in price or strategy must be evaluated with extreme care to obtain a positive outcome and income, instead of losing assets.

This scenario is related to the economics course readings in all senses. We could find in the scenario concepts like supply and demand, price elasticity, elasticity of demand, opportunity cost, purposeful behavior, marginal analysis, scarcity, etc. Any person who would want to be an entrepreneur must be aware of the meaning of all this concepts and how to apply them in their business. In addition they most create a business plan and do research before making any decision. When we want to make a difference to impact our market, we have to know how to handle it and who is on top of the market so we can be a good competition to it. People have to look at your company as a real solution or alternative otherwise, you are just wasting your assets.

By definition economics is a social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity (McConnell & Brue, 2008). In other words, economics studies how people use their scarce or limited resources to satisfy their unlimited wants. Its function is to restrict options and demand choices (McConnell & Brue, 2008). This is why we study economics.

To have a comprehensive analysis of how economics works we, must use certain tools to identify and understand the situation, apply a strategy and how to make a good choice or decision. The economic problem is another term for scarcity. In other words, it means that we cannot have everything that we want to produce or wish to have. Another way of seeing it is by looking at our input or resources, output and where to distribute our output or products or services. The economizing problem also is how every society will resolve their problems answering the questions raised during any given situation. We also have to understand and analyze our opportunity cost. This is the value of our best choice or product we want to produce. It also gives us alternatives to decide which alternative is the best for us after doing a research. We also must understand what supply and demand means. It helps us to determine how many of our goods we must produce or what services the population is requiring. This is one of our bases to maintain a healthy business. The economics uses or explore the scarce resources in many ways. Like we explained before, it uses a resource and determines which product or service is wanted by the consumers, which are viable and which are not and it also locate where to distribute that good or service to receive the expected income.

Economics uses quantitative and qualitative models. The quantitative model was designed to give accurate predictions and the qualitative model helps to explain the dynamics without giving accurate predictions. In economics both of these models are extremely used because gives a perspective in which way the study of our interest must be directed.

References

McConnell, C.R., & Brue, S.L. (2008). Economics: Principles, problems and policies. Retrieved from https://ecampus.phoenix.edu/content/eBookLibrary2/content/DownloadList.aspxassetMetaId=b7cc05a5-63f9-48e6-956a-70c390b1d66f&assetDataId=b93810b8-c1c3-4620-90eb-5794262a0f33.

Leave a Reply

Your email address will not be published. Required fields are marked *