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MGT5001 Assignment 3 Graded January 19, 2008

Posted by thinkphd in : MGT5001 , trackback

I received my graded assignment 3 Demand Analysis and scored a 99%. I had just a grammatical error or two and a point was deducted. Ouch! Dr. P. continued to complement me on my clear writing style and made some comments in the margin that let me know that I was on track. She liked the examples that I gave and commented on Ben Bernanke’s quoted observation:

“In coming decades, many forces will shape our economy and our society, but in all likelihood no single factor will have as pervasive an effect as the aging of our population.”

To illustrate elasticity of demand, I discussed the Forever Stamp and hunting license fees in the Commonwealth of Virginia. I observed that the Virginia Department of Game and Inland Fisheries (VDGIF) did not have good information when the decision was made to increase licenses by $5 in 2006. They sold just 316 licenses less than the previous year and revenue increased by $5.4MM. However, since quantity demanded was inelastic and raising the price by 4.2% only meant a .02% reduction in number sold, the VDGIF apparently needs to take an ECON101 class. They left money on the table when increasing licenses by $5; they could have increased the price by twice that.

The next assignment is on Production and Cost Analysis, chapters 8- 10 in the Thomas and Maurice text. The Discussion Question involves whether or not tolls would decrease congestion on highways. The paper is a comparison between production and cost in the short term and production and cost in the long term.

I am almost through the chapters and should start on the writing later today.

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