Q Instructions This paper will be a compilation of research that you conduct at the end of each of the modules in weeks 2-4. You will be applying the Microeconomic Concepts that you have learned in those modules to prepare a market overview of a particular product (or service) market. The outline below will help you to assemble your paper. Use the rubric attached to the assignment to guide you in writing the paper. As described in the rubric, you will be graded on • Voice: The paper should be written as an academic paper. • Research: You should use multiple sources and you should accurately describe the information gathered from these sources. • Economic Thinking: The economic concepts should be applied accurately. • Substance/Content: The content of the paper should adequately cover the requirements as described in the instruction below. • Mechanics: The paper should be edited to include proper spelling and punctuation, and sources should be cited appropriately. As you compile the paper each week, be sure that it flows and reads like one cohesive paper. The paper should be approximately 3 pages long and be in APA format. Be sure to list your sources at the end of your paper and cite them in the body of the paper when using specific information obtained from a source. Note: Be sure to cite your article source in 7th Edition APA format. Need a refresher on 7th Edition APA Citation? Check out the Maryville Library Citation Help APA Style (7th Edition) Lib Guide (Links to an external site.). Outline of the Paper Introduction In the discussion assignment Real World Markets in week 2, you chose a market and found a current article about that market. This market will be the focus of your paper. You will begin your paper with an introduction that describes the product or service. 1. Give some background on the product/service. 2. Describe why it interests you or why it is currently in the news. 3. Describe where/how it is sold. What is the selling price range? 4. Pictures are acceptable here in addition to text description. Supply and Demand Using your Real World Markets discussion post from Week 2, expand on your post regarding your chosen market, using the following as a guideline. 1. Describe the significant factors currently affecting demand for this product. Factors affecting Demand can be: Income, Preferences, Prices of Related Goods, Number of Buyers, Expectations of Future Price. 2. What are significant factors affecting the supply? Factors affecting Supply can be: Prices of Relevant Resources, Technology, Prices of Other Goods, Number of Sellers, Expectations of Future Price, Taxes and Subsidies, and Government Restrictions. Consumer Demand Refer to what you learned about Price Elasticity of Demand in Week 2. Use the four determinants of elasticity in relation to your product: Substitutes, Necessity vs Luxury, Proportion of Income spent on this product, and the time urgency of this product to explain why your product might be inelastic or elastic. Be sure to state whether you believe your product is relatively price elastic or price inelastic, and why. 1. Extra credit: Diminishing Marginal Utility. Can you find evidence of consumers experiencing diminishing marginal utility when purchasing the product? If so, what specific strategies does the producer use to mitigate this? Some examples are adding new products to their line, adding new features to existing products… Supply Decisions Using what you learned in Week 3 about Costs of Production, describe the fixed and variable costs of producing the good in this market. You don’t need to find the actual numbers, just describe what elements of producing the product are fixed and what elements are variable. Next, do some research to find if the producer had to make decisions regarding production vs. investment? When considering profit, what might be an implicit cost that the producer should take into account when calculating economic profit? Market Structures Which of the four market structures (perfect competition, monopoly, monopolistic competition, or oligopoly) most closely resembles the market for this product. What are the elements of this market structure for your product? 1. Extra credit: Look for data on profitability of producers in the product market. What does the level of profitability or lack of profitability indicate about the market structure, and what does it mean for the future of this product market? The Market for Labor As you learned in Week 4, the demand for labor is derived from the demand for the product that is produced. How has the demand for your product affected the demand for labor in your market? Has it led to a shortage or surplus of labor in that market? Government Intervention Using what you learned in Week 4 about market failure, any form of market failure that is evident in your market. This would include externalities, asymmetric information, and market power. Has government regulation impacted the market? Conclusion Give a brief conclusion that summarizes the major findings in your paper. This will summarize what you have learned over the first 4 weeks of the course.