ECO 201 Milestone Two

ECO 201 Milestone Two Guidelines and RubricThe purpose of this milestone is for students to begin their firm analysis from a microeconomic perspective, applying concepts learned in Modules One, Two, andThree. Specifically, students will examine the supply and demand conditions for the goods or services the firm produces, paying special attention to how salesand product development have evolved over time. Students will then apply the elasticity concept to determine how the price elasticity of demand for the firm’sgoods or services would be categorized, and they will examine what that suggests for the firm’s ability to increase or decrease prices.Prompt: Submit a draft of the supply and demand conditions (Section II) and price elasticity of demand (Section III) of your research paper, including all criticalelements listed below. You will analyze data on firm sales and in the market overall to identify trends and inform your recommendation for the firm’s futureactions. You will also use available data to determine the price elasticity for the goods or services your firm produces and explain the factors that influenceconsumers’ reactions and the firm’s pricing decisions.Specifically the following critical elements must be addressed:II. III. Explore the supply and demand conditions for your firm’s product.a) Evaluate trends in demand over time and explain their impact on the industry and the firm. You should consider including annual sales figures forthe product your firm sells.b) Analyze information and data related to the demand and supply for your firm’s product(s) to support your recommendation for the firm’sactions. Remember to include a graphical representation of the data and information used in your analysis.Examine the price elasticity of demand for the product(s) your firm sells.a) Analyze the available data and information, such as pricing and the availability of substitutes, and justify how you determine the price elasticityof demand for your firm’s product.b) Explain the factors that affect consumer responsiveness to price changes for this product, using the concept of price elasticity of demand as yourguide.c) Assess how the price elasticity of demand impacts the firm’s pricing decisions and revenue growth. RubricGuidelines for Submission: Your paper must be submitted as a two- to three-page Microsoft Word document with double spacing, 12-point Times New Romanfont, one-inch margins, and sources cited in APA format.Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,review these instructions.Critical ElementsConditions: Impact Conditions: Firm’sActions Proficient (100%)Effectively evaluates trends indemand over time and explainstheir impact on the industry andthe firmAnalyzes information and datarelated to the demand and supplyfor the firm’s product(s) tosupport recommendation for thefirm’s actions and includesgraphical representation of dataand information Price Elasticity ofDemand: Analyze Analyzes the available data andinformation and justifies how theprice elasticity of demand for thefirm’s product was determined Price Elasticity ofDemand: ConsumerResponsiveness Explains the factors that affectconsumer responsiveness to pricechanges for the product using theconcept of price elasticity ofdemand as a guideAccurately assesses how the priceelasticity of demand impacts thefirm’s pricing decisions andrevenue growth Price Elasticity ofDemand: PricingDecisions Needs Improvement (75%)Evaluates trends in demand overtime, but evaluation is ineffectiveor does not explain their impacton the industry and firmAnalyzes information and datarelated to the demand and supplyfor the firm’s product(s), butinformation and data do notsupport recommendation for thefirm’s actions or do not includegraphical representation of dataand informationAnalyzes the available data andinformation, but does not justifyhow the price of elasticity ofdemand for the firm’s productwas determinedExplains the factors that affectconsumer responsiveness to pricechanges for the product, but doesnot use the concept of priceelasticity of demand as a guideAssesses how the price elasticityof demand impacts the firm’spricing decisions and revenuegrowth, but assessment isinaccurate Not Evident (0%)Does not evaluate trends indemand over time Value18 Does not analyze information anddata related to the demand andsupply for the firm’s product(s) 18 Does not analyze the availabledata and information todetermine the price elasticity ofdemand 18 Does not explain the factors thataffect consumer responsivenessto price changes for the product 18 Does not assess how the priceelasticity of demand impacts thefirm’s pricing decisions andrevenue growth 18 Articulation ofResponse Submission has no major errorsrelated to citations, grammar,spelling, syntax, or organization Submission has major errorsrelated to citations, grammar,spelling, syntax, or organizationthat negatively impact readabilityand articulation of main ideas Submission has critical errorsrelated to citations, grammar,spelling, syntax, or organizationthat prevent understanding ofideasEarned Total 10 100%