Choose a consumer electronics product
In this assignment, we’re going to each explore these concepts in a real-world context. Write this up as a REPORT of your exercise, not as an ESSAY. Bullets are OK! Start by Reading Chapters 1-4 of: Wessels, W.J. (2017 Economics, 6th edition. Barron’s Business Review Series.
Step 1. Choose a consumer electronics product
Some possibilities are smartphone, tablet, laptop, desktop – price must be at least $100 and have multiple sellers. You MUST specify the brand, model number, generation, color, memory, storage, and any accessories included in the package.
Step 2. Demand side factors (Note: this is similar to the coffee discussion)
Substitutes: List substitutes for your product. How would demand for your product change if the price of a substitute rose? If the price of the substitute fell?
Complements: List compliments for your product. How would demand for your product change if the price of a complement rose? If the price of the complement fell?
Income: How would demand for your product change during a period of rising income? During times of falling income?
Expectations: List factors would affect expectations for your product. Prices? New releases? How would they affect willingness to buy now?
Taste: List factors that affect the willingness of people to buy your product that economists would classify as “taste”. No, not raspberry pi flavored.
Step 3. Supply side factors (Note: this is DIFFERENT FROM the coffee discussion)
Opportunity Costs: List some products that could be made instead of your product using the same resources. What happens to the willingness to supply your product if the price of an alternate product rises?
Price of Inputs: List some of the inputs to producing your product. What happens to the willingness to supply your product if the price of an input rises?
Technology: Changes in technologies might have varying effects on the willingness to sell your product. List some possible changes in technology and explain how they might affect the willingness to supply your product at the current price.
Natural Causes: In thinking about natural causes for producing consumer electronics, you might think about natural disasters. Explain how that might affect the willingness to supply your product at the current price.
Step 4. Price
Shop for your EXACT product online. Find it at 5 stores. List the store and the price and the date you found it.
Explain the prices you found using the analysis from this module.
Notes about submissions:
Students frequently ask me how long this assignment should be—it depends on your writing style, but the range for most students will be 3-5 pages. What I’m looking for is an analysis in which you draw conclusions, based on your observations and supported by the economic readings.
Be sure to cite your sources (including readings and classmates) if you use any ideas from others (whether you’re directly quoting them or not).
Make sure that your name is on your paper someplace!
Assignments should be single-spaced and left justified (both are the default settings).
Start by Reading Chapters 1-4 of: Wessels, W.J. (2017 Economics, 6th edition. Barron’s Business Review Series.
Answer preview to Choose a consumer electronics product
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