Microeconomics

Assignment 2: Utility, Elasticity, and Demand

For this assignment, suppose that you are in charge of designing a product campaign for a new shampoo.

Assignment Guidelines, Part 1

Prepare a 2-3 page paper in Microsoft Word to address the following:

• Describe the ultimate goal of the product campaign for the new shampoo.
• Discuss your methods for achieving this goal.
• Identify the components of marketing, pricing, and distribution for the campaign.
• Include in your response a discussion and analysis of the concepts of utility, price elasticity, and demand.

Assignment Guidelines, Part 2

Using Microsoft Excel:

• Prepare a graph which illustrates the desired effect of the marketing campaign as a shift in market equilibrium with reference to price and quantity adjustments.
• Prepare another graph to illustrate how a change in consumer utility affects the price elasticity of demand.
• Copy and paste or import these graphs into the MS Word document you prepared in Part 1 of this assignment.

(Tutorials for working with MS Excel and MS Word can be found through the Tutoring Services and Tutorials link at the top of the page.)

Remember, quotations, paraphrases, and ideas you get from books, articles, or other sources of information should be cited using APA style.