Will Bury’s Price Elasticity Scenario Kuitina Smith Economics/ECO 561 Professor Sadu Shetty April 13, 2009 Will Bury’s Price Elasticity Scenario In the Will Bury Scenario, supplied by the University of Phoenix online, my paper will explain some economic concepts from this week’s reading assignment. This information will in turn be used to relate to the context of the scenario. The concept of scarcity and choice states that because there are scarce resources, this will ffect the production of goods and services, which ultimately will limit a consumer’s choices. In the Will Bury Scenario, Will does not have the qualified human resources to help implement his invention. This will in fact affect what he will be able to produce, which will have consumers choosing alternatives. With the concept of rational behavior, according to McConnell and Brue, economics assumes that human behavior reflects “rational self-interest. ” Individuals look for and pursue opportunities to increase their pleasure happiness, or satisfaction.
They allocate their time, energy, and money to maximize their well being. Because they weigh costs and benefits, their decisions are “rational” or “purposeful,” not “random. ” Will has an invention that is already in the market but what will make his invention rational to consumers is the new technology that will be used that has the digital reader sounding more human. This would make it easier for listeners to understand what the digital reader is saying. Another concept is supply and demand.
Supply is concerned with the amount a producer is willing to offer to consumers at varying prices, while demand is concerned with how willing consumers are to buy a certain product at varying prices. Will must determine, as a producer, just how much of his product he is willing to offer consumers at different prices. The demand for this type of product should be researched. If there is a high demand for this type of product then prices should reflect this. If it’s visa versa then prices should be lower.
In conclusion, the assigned readings for this week related basic economic concepts of scarcity, choice, rational behavior, supply, and demand with the context of the Will Bury Scenario. Following information pertaining to these topics will ensure that Will is one step closer to established success. References McConnell, C. R. , Brue, S. L. (2004). Economics: Principles, Problems, and Policies, 16th ed. McGraw-Hill Companies University of Phoenix (2008). Will Bury’s Elasticity Scenario.