3-2 Simulation Discussion: Competitive Markets

NOTE THAT A CUSTOM RUBRIC IS USED FOR THIS DISCUSSION. 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 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. In your responses, comment on at least two posts from your peers and share an example of a company that experienced a change in revenue as the result of a change in the price of the good or service they provided. After reading your peers' posts, explain which determinants of price elasticity of demand could be the cause of the change in demand. To access your simulations, click the simulation link found in the module.