Explain what will happen to the market supply curve, the equilibrium price, and the equilibrium quantity of the good or service that you sell if the principal resource used to produce it becomes extremely scarce

Discussion Assignment

The following information describes the requirements for the first essay that you are scheduled to write this semester: It must be at least five paragraphs long (more is usually better); grammatically correct; based on knowledge of the textbook, outside research, and solid logical analysis; and demonstrate that you understand and can apply the concepts that we have covered in class. You must include bibliographic information on the sources you use and make sure that they are credible. It is due by the 29th of July and will only be accepted after that date under special circumstances. I recommend that you send me a rough draft before the due date to ensure that you are correctly writing your essay. When writing your essay, follow the steps listed below in the order that they appear and don’t hesitate to contact me if you have any questions.

Step One: Begin your essay by describing the characteristics of perfectly competitive firms. Be sure to include an explanation of how they establish price, why their demand curves are horizontal, and why the price elasticity of demand for the goods or services they sell is usually highly elastic.

Step Two: Next, create a perfectly competitive firm in the Valley and explain why the good or service that you will sell is appropriate for a perfectly competitive market and would be successful in the Valley.  The good or service that you sell cannot be one of the examples provided in the textbook or class notes.

Step Three: Next, explain what will happen to the market supply curve, the equilibrium price, and the equilibrium quantity of the good or service that you sell if the principal resource used to produce it becomes extremely scarce.

Step Four: Submit your essay. This can be done by scrolling down to the bottom of this screen and clicking “reply.” Once the new page opens, you can submit your essay as an attachment or by cutting and pasting it in the space provided. Then, press “submit.” Your essay will be accessible to Dr. Peek and to other students. Before submitting it, however, make sure that you have completed the checklist at the bottom of the page.