Solved: ECO 201 Milestone Two Guidelines and RubricThe purpose of this milestone is for students to begin their firm analysis from a microeconomic perspective, applying concepts learned in Modules One, Two, and Three. Specifically, students will examine the supply and demand conditions for the goods or services the firm produces, paying special attention to how sales and product development have evolved over time. Students will then apply the elasticity concept to determine how the price elasticity of demand for the firmís goods or services would be categorized, and they will examine what that suggests for the firmís ability to increase or decrease prices. Prompt: Submit a draft of the supply and demand conditions (Section II) and price elasticity of demand (Section III) of your research paper, including all critical elements listed below. You will analyze data on firm sales and in the market overall to identify trends and inform your recommendation for the firmís future actions. You will also use available data to determine the price elasticity for the goods or services your firm produces and explain the factors that influence consumersí reactions and the firmís pricing decisions. Specifically the following critical elements must be addressed:
- Explore the supply and demand conditions for your firmís product.
- Evaluate trends in demand over time and explain their impact on the industry and the firm. You should consider including annual sales figures for the product your firm sells.
- Analyze information and data related to the demand and supply for your firmís product(s) to support your recommendation for the firmís actions. Remember to include a graphical representation of the data and information used in your analysis.
- Examine the price elasticity of demand for the product(s) your firm sells.
- Analyze the available data and information, such as pricing and the availability of substitutes, and justify how you determine the price elasticity of demand for your firmís product.
- Explain the factors that affect consumer responsiveness to price changes for this product, using the concept of price elasticity of demand as your guide.
- Assess how the price elasticity of demand impacts the firmís pricing decisions and revenue growth.