Case Study: Chapter 2 

Please address the following case study relating to supply and demand in a fictitious national market for chicken eggs. This case study relates to Chapter 2 of the textbook and the lecture on Demand, Supply, and Market Equilibrium. 

Note: The lecture is decomposed into four sections that correspond to a section of the case study and related pages of the book. The lecture section and book pages are indicated with each section of the case study. 

Please submit your work as a single Word document. When I request calculations, you can write them by hand and incorporate a photograph into the document or you can type up the calculations in the document. Similarly, you can create any tables by hand, in Word, or other ways, but your tables should be clear. The document should be approximately 2-4 pages (counting each side of the paper as a page) in length. Please indicate in some way which part of the document responds to each question. The assignment will be graded based on correctness, effort, and presentation. 

Section 1.  Demand: Pages 38-52 

Your analysts present you with the general demand function: 

???????? = 7.6 0.5???? 1.2???? + 1.5???????????????????????????? + 0.1???????????????????????????????????? + 0.2???????? + 2???? 

where ???????? is the quantity demanded, ???? is the price, ???? is average consumer income (in $10,000s), ???????????????????????????? is the price of breakfast cereal (which here is considered a substitute for eggs), ???????????????????????????????????? is the Egg Health Index (a measure of consumer perception of the healthiness of eggs, ???????? is the expected price of eggs next month, and ???? is the number of hundred millions of consumers in the market. 

Currently, average consumer income is $50,000 (so 5 $10,000s), the price of breakfast cereal is $3, the Egg Health Index is 60, consumers expect the price of eggs to be $2.50 next month, and there are 300,000,000 consumers (so 3 hundred millions). 

a. Use these values of the factors affecting demand to find the direct demand function. 

b. Create a demand schedule by finding the quantity demanded when the price is $1.00, $1.50, $2.00, $2.50, $3.00, and $3.50. 

c. Use algebra to convert the direct demand function into an inverse demand function (show a line or two of work). 

d. Graph the inverse demand function (you can sketch freehand or use Excel but be sure to label the axes and either the scale or a couple points on the curve). 

Section 2.  Supply: Pages 52-61 

Your analysts present you with the general supply function: 

???????? = 4.5 + 1.6???? 2???????????????????????? 1???????????????????????????? + 0.03???????????????????????????????????????????? 0.5???????? + 0.4???? 

where ???????? is quantity supplied, ???? is the price, ???????????????????????? is the price of grain (an important feedstuff for chicken), ???????????????????????????? is the price of chicken breast (which here is treated as a substitute use of chickens), ???????????????????????????????????????????? is the annual rate at which your chickens lay their eggs (which is treated as technology), ???????? is the expected price of eggs next month, and ???? is the number of major firms in the egg industry. 

Currently, the price of grain is $4, the price of chicken breast is $3, your chickens lay 300 eggs per year, you expect the price of eggs next month to be $3, and there are 18 major firms in the egg industry. 

a. Use these values of the factors affecting supply to find the direct supply function. 

b. Create a supply schedule by finding the quantity supplied when the price is $1.00, $1.50, $2.00, $2.50, $3.00, and $3.50. 

c. Use algebra to convert the direct supply function into an inverse supply function (show a line or two of work). 

d. Graph the inverse supply function (you can sketch freehand or use Excel but be sure to label the axes and either the scale or a couple points on the curve). 

Section 3.  Market Equilibrium and the Value of Market Exchange: Pages 61-67 

a. Use the direct demand and supply functions for eggs that you found in your answer to Module 1 to solve for the equilibrium price and quantity of eggs sold. Then put the demand and supply schedules together and show that this is the equilibrium. Finally put both the demand curve and the supply curve on the same graph to show the equilibrium graphically. 

b. Use your graph of the market equilibrium to find the vertices of the triangle representing consumer surplus. Calculate the value of consumer surplus in this market. 

c. Use your graph of the market equilibrium to find the vertices of the triangle representing Producer surplus. Calculate the value of Producer surplus in this market. 

Section 4.  Changes in Market Equilibrium: Pages 68-76 

Qualitative analysis 

a. A study in the New England Journal of Medicine is being published that is very critical of the cholesterol associated with eggs. You believe this will negatively impact consumer preferences for eggs (e.g. it will decrease the Egg Health Index). What effect do you expect this to have on the equilibrium price and quantity of eggs? 

b. Now assume instead that it is the end of Winter and both consumers and firms expect that prices will rise next month due to Spring holidays such as Easter. Though both consumers and firms expect prices to rise, they may believe prices will rise by different amounts. What effect do you expect this to have on the equilibrium price and quantity of eggs? 

Quantitative analysis 

a. Industry-wide modifications to chicken feeding practices have been very successful at increasing egg production and the average number of eggs laid per chicken jumps from 300 to 370. What are the new equilibrium price and quantity? 

b. Now assume instead that favorable growing conditions in the Midwest drive down the price of grains which are used to feed chickens and also in breakfast cereal. The price of grain used to feed chickens falls from $4 to $3.55 and the price of cereal falls from $3 to $2.20. What are the new equilibrium price and quantity? 

 

Week 2 Discussion Board

Chapter 3 discusses methods to assess the quality of simulations. You learned about three different views of simulation quality.

Suppose you lead a task force that is developing a simulation to provide strategic planning recommendations for property use zoning for a county of 750,000 residents. The zoning board and county commissioners want a simulation that allows them to assess the impact of various zoning decisions based on a variety of dynamic factors, including age, race, education, and income status. Which of the three views discussed would provide the best quality assessment for this type of simulation? How would you ensure the highest level of accuracy with you simulation, and how would you go about determining accuracy?

You must do the following:

1) Create a new thread. As indicated above, identify which of the three views discussed in the chapter that would provide the best quality assessment for the situation described above, and explain your decision. How would you ensure the highest level of accuracy with your simulation, and how would you go about determining accuracy?

2) Select AT LEAST 3 other students’ threads and post substantive comments on those threads. Your comments should extend the conversation started with the thread.

ALL original posts and comments must be substantive. (I’m looking for about a paragraph – not just “I agree.”)

 

Week 2 Research Paper: Blockchain

Industry experts believe blockchain is a technology that has the potential to affect the business of most IT professionals in the next five years. Pick an industry you feel will be most affected by blockchain and how blockchain may be used in that industry. As an IT manager, how would you embrace blockchain? For instance, how would training occur for your team, what strategies might you use, what security methods may you recommend be used?

Your paper should meet the following requirements:

Be approximately four to six pages in length, not including the required cover page and reference page.

Follow APA6 guidelines. Your paper should include an introduction, a body with fully developed content, and a conclusion.

Support your answers with the readings from the course and at least two scholarly journal articles to support your positions, claims, and observations, in addition to your textbook. The UC Library is a great place to find resources.

Be clearly and well-written, concise, and logical, using excellent grammar and style techniques. You are being graded in part on the quality of your writing.

 

Case Study 1

Read the attached article:

• https://www.mckinsey.com/business-functions/risk/our-insights/enterprise-risk-management-practices-where-is-the-evidence

GUIDELINES FOR WRITING A CASE STUDY

A case study analysis requires you to investigate a problem, examine the alternative solutions, and propose the most effective solution using supporting evidence.  Your submission should be no more than 2 pages and needs to adhere to APA formatting for spacing and citations.  Include a title page, your case study (1-2 pages), and reference page.  For guidance on APA formatting check out this resource:  https://owl.english.purdue.edu/owl/section/2/10/

Preparing the Case

Before you begin writing, follow these guidelines to help you prepare and understand the case study:

1. Read and examine the case thoroughly
   • Take notes, highlight relevant facts, underline key problems.
2. Focus your analysis
   • Identify two to three key problems
   • Why do they exist?
   • How do they impact the information security field?
   • Who is responsible for them?
3. Uncover possible solutions
   • Review course readings, discussions, outside research, and your experience.
4. Select the best solution
   • Consider strong supporting evidence, pros, and cons: is this solution realistic?

Drafting the Case

Once you have gathered the necessary information, a draft of your analysis should include these sections:

1. Introduction
   • Identify the key problems and issues in the case study.
   • Formulate and include a thesis statement, summarizing the outcome of your analysis in 12 sentences.
2. Background
   • Set the scene: background information, relevant facts, and the most important issues.
3. Alternatives
   • Outline possible alternatives (not necessarily all of them)
   • Why are alternatives not possible at this time (if not possible)?
4. Proposed Solution
   • Provide one specific and realistic solution
   • Explain why this solution was chosen
   • Support this solution with solid evidence
5. Recommendations
   • Determine and discuss specific strategies for accomplishing the proposed solution.
   • If applicable, recommend further action to resolve some of the issues
   • What should be done and who should do it?

Finalizing the Case

After you have composed the first draft of your case study analysis, read through it to check for any gaps or inconsistencies in content or structure: Is your thesis statement clear and direct? Have you provided solid evidence? Is any component from the analysis missing?

When you make the necessary revisions, proofread and edit your analysis before submitting the final draft.

Lester Scholl’s administrative assistant calls you on Monday afternoon to set up a conference call between you and the chairman tomorrow morning to discuss the board’s reaction to your list and to discuss your next task. You call the number she gave you, and Lester joins the call shortly after.

“I’m pleased with your work,” he says. The board was impressed with your list of factors. Your ranking made sense because your explanations were well-written. I suspect they read everything you sent because it was concise and clear. Good job.”

“Thanks,” you say, and you feel relieved that your first assignment was well-received.

“Your list provided the basis for a good conversation about the manufacturing operations,” he says. “We want to know more about the economy of both countries to further inform our decision-making process.”

“That makes sense,” you say. “The United States and South Korea hold many distinct economic factors that may affect AutoEdges long-term financial performance.”

“Right,” he says. “Your research on the two economies will give the board enough information so we can advise the new, incoming CEO.”

“What should my research include?” you ask.

“In your research, you must take into consideration several macroeconomic factors,” he says. “We want to see information about the gross domestic product (GDP), unemployment, interest rates, and inflation for both the United States and South Korea. Make sure your research is current; that is, no more than 6 months old.”

“I’ll get started right away,” you say.

“Very good,” he says. “Let me know if you have any questions, and I’ll put you in touch with some of the other members of the board if I can’t provide the answers you need.”

“Great,” you say. “Thank you.”

Need 500 words — with references 

 

1. Review the three articles about Inflation that are found below this. 

2. Locate two JOURNAL articles which discuss this topic further. You need to focus on the Abstract, Introduction, Results, and Conclusion. For our purposes, you are not expected to fully understand the Data and Methodology.  

3. Summarize these journal articles. Please use your own words. No copy-and-paste. Cite your sources.

PLEASE READ REQUIREMENTS FOR ASSIGNMENT COMPLETELY/MUST BE ORIGINAL WORK.

Using the New York Times article, “Defiant, Generic Drug Maker Continues to Raise Prices,” conduct further research on the pricing strategies of generic drug manufacturers. In 7501,000 words, analyze the pricing strategies and discuss the following:

1. Discuss the pricing decisions of generic drug manufacturers.
2. Evaluate the impact competitors and additional economic factors have on the results of the generic drug pricing strategies. What factors contribute to the advantages and disadvantages of various pricing strategies?
3. Discuss the social and financial implications of generic drug pricing decisions for various groups of stakeholders. What would be the socially optimum pricing strategy for the United States? What would be the socially optimum pricing strategy globally?

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

Link for article:

https://www.nytimes.com/2017/04/14/business/lannett-drug-price-hike-bedrosian.html 

 

Prices serve a rationing function. When quantity demanded exceeds quantity supplied, prices rise to alleviate the shortage. When quantity supplied exceeds quantity demanded, prices fall to alleviate the surplus. However, when prices are inflexible, shortages and surpluses persist. Other rationing mechanisms must develop.

• Using demand and supply analysis, describe a specific situation where a shortage occurred. Why were prices unable to adjust in this market?
• Combining what you learned from your readings as well as from the video clip, what other rationing functions could develop to alleviate the shortage?