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eco 201 - duscussion module 3.docx - Based on this week...

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Based on this week simulation, I may not have a future as an orange seller! My goal was obviously to sellall oranges with the highest profit margin possible. My strategy was to present an asking price just belowthe current lowest ask in hopes that this would make my asking price the most attractive to potentialbuyers. On the first round I ran out of time waiting for buyers to come to me and did not sell all threeoranges. In subsequent rounds I was more apt to accept the highest bid to avoid running out of time.Using this approach, I was, at times selling below the equilibrium price to ensure I sold my entire stockbefore running out of time. Overall, I walked away with a profit of only $0.39 – not very impressive!Price Elasticity of Demand (PED) is an economic tool that measures the change in quantitydemanded of a product when there is a fluctuation in its price. (Analytics Steps, 2022).If I owned abusiness, my understanding of price elasticity of demand would impact pricing decisions. Say, forexample, I owned an HVAC company in Phoenix, Arizona. One factor that affects price elasticity that Iwould factor into my service prices would be essential vs. non-essential consumer goods. In Arizona,

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