The equilibrium price

 

 

Prices are the driving force behind every buying and selling decision in a market economy. Prices are determined by the supply and demand equilibrium and are influenced by the price elasticity of demand and supply of goods and services.

For this discussion, first play the simulation game Competitive Markets in the MindTap environment. Then, you will share your experiences playing that game. Your work in this discussion will directly support your success on the course project.

In your initial post, include the image of your simulation report in your response. See the How to Submit a Simulation Report Image PDF document for more information. Then, address the following questions:

Based on the outcome of the simulation, was the sale price you set the same as the equilibrium price? Refer to the supply and demand model to explain why they might be different.
Imagine that you own your own business. How would price elasticity of demand impact the pricing decisions of your business?
What are the determinants of price elasticity of demand? Identify at least three examples

 

 

Sample Solution

The equilibrium price

Price elasticity of demand is used to measure the relationship between price and demand, and how changes to one will affect the other. All products will have different responses in consumer demand to price changes. Therefore, it is critical to understand those differences when making important pricing decisions. When utilized well, price elasticity can drive enormous value for retailers. Knowing the elasticity of your products is key to determining how customers will react to price changes. Equipped with that information, there are two strategic pricing moves you can make to increase profits. For elastic products, reduce prices to drive more sales volume. This will also improve your price perception in the market. With inelastic products, increase your prices to drive higher margins with limited impacts on units sold.

ve to be clinically diagnosed based off the patient’s symptoms. If an individual only has persistent delusions it becomes apparent to the doctor that they aren’t schizophrenic. Schizophrenic requires multiple symptoms not just delusions. A person with delusional disorder are typically fully functioning individual except for their delusional episodes. According to Belmont Behavioral Hospital, emphasizes that “This condition could have an impact on the person’s daily living, although, fortunately, it does not necessarily prevent that individual from functioning within society on an ongoing basis”. In contrast to Schizophrenia, this psychotic disorder causes patience to be more dependent on friends and family due to lack of the ability to make decisions on their own. Another, similar disorder whose symptoms have to be clinically distinguished from Schizophrenia is substance or medication induced psychotic disorder. Substance induced psychotic disorder is when a patient has been abusing a controlled substance that is mind altering. Examples of drugs that cause, hallucinations and or delusions would be LSD, Psilocybin Mushrooms, recreational marijuana, and opioids. The Substance Abuse and Mental Health Services Administration report the staggering statistic that in 2014, “approximately 1.2 million Americans are currently hallucinogenic drug users”. This goes to show the epidemic that psychiatrist have to take into account prior to clinically diagnosis an individual with Schizophrenia. The diagnosis for substance or medication induced psychotic disorder is to conduct a urine test to determine if the person is experiencing a “bad trip,” due to a controlled substance. The American Addiction Center, provides a description of a bad trip as “when brain levels of the drugs become “too” high, the effects become bizarre, and you start experiencing out-of-the-earth things”. An individuals with history of drug use that have been diagnosed with substance psychotic disorder often have recurrent bad trips even after the sobriety. It’s undeniable that mind altering drugs can lead to damaging the brain and permanently causing symptoms similar to Schizophrenia. However, Schizophrenia is typically a lifelong disorder while acute Substance Induced Psychotic Disorder symptoms with proper treatment and sobriety can go away. Schizophrenia can be linked by genetics while Substance Induced Psychotic Disorder, is due to abusing a controlled substance. Neither, are curable however, with treatment symptoms can subside or disappear. Prevalence Rates of Schizophrenia Physiatrist have observed that there is a difference in prevalence in women and men with Schizophrenia. According to Rena Li and Xi Ma, two Psychiatrist at the University of Tennessee, “Schizophrenia is more frequent in men. Female onset is typically 3–5 years later than males. It is now accepted that men has a single peak age for onset which is between 21 and 25 years old and women have two peaks age of onset, one between 25 and 30 years

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