Describe how government’s power to coerce can be economically beneficial and list some of the difficulties associated with managing and directing government. Discuss price elasticity of demand and how it is calculated. List the factors that affect price elasticity of demand and describe some applications of price elasticity of demand. Use your book well. Describe price elasticity of supply and how it can be applied. Why is this analysis so useful in explaining market prices, and how firms price their goods. Could you raise your prices of your hamburgers (McDonalds) if you had a lot of competition. What if you were Facebook, Microsoft, Apple? This is why Warren Buffet likes great brand names and has become very wealthy — see Disney and Apple, even Wells Fargo.
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