Phoenix Eco/365 Ten Principles of Economics and How Markets Work

Purpose of Assignment 

In Week 1, students are introduced to the ten fundamental principles  on which the study of economics is based. Throughout this course, the  students will use these ten principles to better develop their  understanding of economics and how society manages its scarce resources.  Students will see how markets work using supply and demand for a good  to determine both the quantity produced and the price at which the good  sells. The concepts of equilibrium and elasticity are used to explain  the sensitivity of quantity supplied and quantity demanded to changes in  economic variables. Students will see how government policies impact  prices and quantities in markets.

Assignment Steps 

Resources: Principles of Microeconomics, Ch. 1, 2, 3, 4, and 6. 

Prepare an 875-word research paper as part of a  marketing research committee for your organization about current  microeconomic thought and theory. 

Identify the fundamental lessons the Ten Principles of Economics teaches regarding:

• How people make decisions
• How people interact
• How the economy works as a whole 

Explain the following to help the committee members understand how markets work:

• How society manages its scarce resources and benefits from economic interdependence.
• Why the demand curve slopes downward and the supply curve slopes upward. 
  • Where the point of equilibrium is and what does it determine?
• The impact of price controls, taxes, and elasticity on changes in supply, demand and equilibrium prices.

Format consistent with APA guidelines.