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For this assignmentyou will submit the supply, demand, and market equilibrium component of your microeconomic analysis paper. This milestone should be a 2–3-page paper structured as follows: First, it describes the price elasticity of supply or demand for your product or service. Second, it explains how two nonprice factors impact the demand of your chosen product or service. Third, it explains how two nonprice factors impact the supply of your chosen product or service. Fourth, it defines the industry and the market equilibrium associated with the product or service. Fifth, it predicts the effect of changes in supply and demand on the market equilibrium. Finally, it describes the decisions related to supply and demand for the product or service that you would make based on the predicted changes in supply and demand on the market equilibrium.
Specifically, the following critical elementsmust be addressed:
I. Supply, Demand, and Market Equilibrium
a) Determine the extent to which the supply anddemand of your chosen product or service aresensitive to changes in price by applying the concept of elasticity. In other words, what is the price elasticity of supply or demand for your product or service?
b) Select two nonprice factorsthat impact the demandof your chosen product or service. Justify your selections.
c) Select two nonprice factorsthat impact the supplyof your chosen product or service. Justify your selections.
d) Define the industry and the market equilibriumassociated with the product or service.
e) Predictthe effect of changes in supply and demand on the market equilibrium.
f) Based on the predicted changes, what decisions related to supply and demand would you makefor your product or service?
Guidelines for Submission:PartI Milestone One should adhere to the following formatting requirements: 2–3 pages (not including cover page or appendix), double-spaced, using 12-point Times New Roman font and the most current guidelines for APA formatting.
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