Week 3 discussion | Economics homework help



In this week’s discussion, you are going to be the CEO of a company.  In anticipation of the upcoming quarterly disclosure of profits, you  prepare your board of directors for the challenge that U.S. tariffs on  Chinese imports are having on profits.

Conceptually, you will be asked to address elasticity as a  measurement of the magnitude of a change. Additionally, you will be  asked to examine how price elasticity of demand plays a role in consumer  demand and how profits are affected by a tariff.


For this discussion, please make yourself CEO of only one of these hypothetical companies.

  1. ‘Tis the Season—’Tis the Season is one of the  largest importers of holiday decorations, and the summer quarter is  devoted to importing decorations such as lighting, artificial trees,  table runners, and outdoor yard decorations—all of which have to be  ready to ship by early fall. In fact, we at ‘Tis the Season have a  highly inelastic supply curve, ramping up to produce decorations for  each season, and then once that season has been shipped, we move on to  the next season. Fortunately, the price elasticity of demand for almost  all of our products is 0.19.
  2. We Build Big—We Build Big is one of the largest  developers of new residential structure in the U.S. We Build Big builds  everything from apartment complexes to new single-family homes. Critical  materials such as lumber, gypsum board, and fabricate metal are largely  imported. At We Build Big, we know that our production process, the  supply curve, is relatively inelastic. The concern over profits is that  the price elasticity of demand for housing is 1.0.
  3. Very Big US Auto—Very Big US Auto is one of the  oldest and largest auto manufacturers in the U.S. Very Big US Auto’s  supply chain is highly dependent on components manufactured in China and  assembled in the U.S. Very Big US Auto knows that the price elasticity  of supply is relatively inelastic and that demand is relatively elastic,  with a price elasticity of demand of 1.2.

In your discussion post, address the following prompts within the  context of your chosen hypothetical company of which you are the CEO:

  • Is the demand curve for your product relatively elastic, inelastic,  or unitary elastic? Demonstrate this for your company’s product by how  much the quantity demanded will change if you pass on the 25% increase  in cost from the tariff as a price increase for your product. In other  words, show your calculation of the percentage change in the quantity  demanded given a 25% change in the price.
  • Given your company’s price elasticity of supply and price  elasticity of demand, prepare a statement for your board of directors as  to the potential impact of profits. Who will pay the larger share of  the tariff: your firm or your customers?

Note: In your discussion posts for this course, do  not rely on Wikipedia, Investopedia, or any similar website as a  reference or supporting source.

To earn full credit for your discussion, you must complete one post  and one follow-up or reply to a classmate. Make sure both the post and  the reply focus on the questions asked.

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.