Assignment 3: Demand and Supply

| June 10, 2016

Question
The use of E-Books has increased in recent years, especially with the advent of mobile E-Readers. A marketing research firm recently developed the following supply and demand schedules for E-books:

Price/E-Book

Quantity DemandedQuestion
Define a business idea, preferably one that you create, that might work as a start-up firm in the United States. Your proposed firm should provide a particular product or service mainly to customers located outside the United States.

Then, using your knowledge from each of the previous modules, explain how your firm could succeed in foreign markets by applying any of the described global strategies. Select a country or countries (or a region) to focus on and explain why that market would be best for your firm. (Remember to discuss institutions.) Provide a detailed assessment of the product or service and of the country or region that will be your selected market.

Finally, describe the specific steps that your firm would take to enter that foreign market. Consider resources, logistics, and competition in this part of your discussion. This is the heart of your paper and should clearly explain the business strategy you plan to use.

Your paper should include at last seven research articles from peer reviewed journals, in addition to books and other credible sources. You should use professional and academic references only. You may use electronic references, but they must be reputable and verifiable sources. Do not use unverifiable sources such as articles without a responsible author or institution.

Your paper should be 5-6 pages in length, well-written, and properly referenced.

The structure of your paper should be as follows:

Introduction and Background on the business idea (1 page).
Description of the product or service that will be provided and why it would be in demand in the given market you’ve chosen (1 page).
Explanation of the target market—why did you select it, what is the legal, political, and economic environment in that market (1 page).
Strategic Analysis – walk the reader through your business strategy. What model will you use, why did you choose it, and what will make it successful in this market with this product or service (2-3 pages).

Quantity Supplied

$18 4000 10,000
16 5000 9500
14 6000 9000
12 7000 8500
10 8000 8000
9 9000 7500
8 10000 7000
7 11000 6500
6 12000 6000
5 13000 5500
4 14000 5000
2 15000 4500
Questions:

Construct a graph showing supply and demand in the E-Book market, using Excel.
How are the Laws of Supply and Demand illustrated in this graph Explain your answers.
What is the equilibrium price and quantity in this market?
Assume that the government imposes a price floor of $12 in the E-Book market. What would happen in this market?
Assume that the price floor is removed and a price ceiling is imposed at $6. What would happen in this market?
Now assume that the price of E-Readers (used with E-Books) drops by fifty percent. How would this change impact the demand for E-Books? Explain your answer and reconstruct the graph developed in question one to show this change.
Present your analysis in Excel format. Enter non-numerical responses in the same worksheet using textboxes.

If you want to learn how to use Microsoft Excel to create curves, refer to the MS Excel tutorials placed.

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