Different products have different elasticities. Heart medication, for example, is inelastic and corn is elastic. Find a product that has not already been selected and describe the price elasticity and income elasticity. How much control might an organization have over pricing based on a product s elasticity? Discuss which of the elasticity rules you used to determine your answer.
The Bureau of Labor Statistics and Federal Reserve Bank in St. Louis both have a lot of economic information. Based on current economic information, for the industry you are familiar with, discuss the positive and negative effects of either a sudden increase or decrease in the number of competitors on prices in the long run. What would you recommend as a course of action, if any? For the industry you have chosen, discuss how price moves from today to the future.