Eco 561 Wk 1

Will Bury Kevin Haagenson ECO-561 10/4/10 Prof. Baker Part 1 The following ar economic concepts found in the Will Bury Goes ball-shaped scenario. Included are explanations of how each concept relates to the scenario. 1.Market motive and equipment casualty setting- Will wants to know what the current demand leave alone be for his digital audio book recordings. This lead go down the best set that he should set for his product. Based on the law of market of demand, the higher the demand the higher the price should be set. A few factors that Will must round of drinks over is will the demand be high enough that spate will choose his product over more conventional methods much(prenominal) as audio cds, variation digitally, or reading a physical book. Will is considering previous pricing models for products such as video taped and audio cassettes. By perusal how these progressive technologies did in their own time Will washbowl better learn how to establish the best price establish on demand for his product. 2. Substitute/ laudatory Goods- One right smart Will can determine the demand of his product is by studying both substitute and complimentary goods. An example of a substitute good for his product would be audio cds.

When dickens products are substitutes the price of one and the demand for the other effort in the same direction. Therefore if the price for audio cds rises and so consumers will find a substitute, such as digital recordings, causing the demand for Wills product to increase. Complimentary goods on the other hand act differently. With complimentary goods, when the price increases for one then the demand for the other falls. For example, MP3 players would be call for to use Wills product. So, when the price for MP3 players rises, people will not want to pay so in turn they will be using their players less and buying digital recordings less therefore driving the demand for Wills product down. 3.Opportunity cost- This is described as the cost incurred when prominent up one thing to... If you want to get a full essay, order it on our website: Orderessay

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