GB 540 GB540 Unit 2 DQ (Kaplan University)

GB 540 Unit 2 DQ (Kaplan University)

GB540 Unit 2 DQs

Unit 2: Domestic and Global Economic Markets: Discussion

GB540 Week 2, Question 1 of 3

Explain why the demand for the good or service provided by the organization you work for is elastic or inelastic.  How does this influence pricing decisions?

Provide examples on how the availability of close substitutes affects price elasticity of demand

Give specific example of necessities or luxuries, and explain how they affect price elasticity of goods or services.

GB540 Unit 2, Question 2 of 3

Describe your understanding of externalities by providing an example of a positive externality and a negative externality

Why do positive and negative externalities lead to inefficiency in the market economy?

How can externalities be addressed using the private sector to reduce market distortions of externalities?

What government policies help deal with positive and negative externalities by reducing inefficiency?

GB540 Unit 2: Domestic and Global Economic Markets

Case Study Discussion

Provide an example to discuss how special interests can succeed in perpetuating policies that are opposed by the majority of voters because the costs of organizing and motivating groups to take political action increase with group’s size.