Carlos Cruz’s Price Elasticity Scenario Analysis
After an exhausting evaluation of Carlos Cruz’s Price Elasticity Scenario we could find various concepts that bring us a clear point of view, of what Mr. Cruz wants to do in his company. Carlos Cruz is an inventor; he formed his business at his house and wants to expand his company by the use of his invention. This invention gives the opportunity of enjoy reading books in a whole new way to some population sectors. He is digitalizing books but in addition he has created new tools and strategies for them to use while using his product. Basically, Carlos wants to have an excellent business approach, free time to enjoy his family life and be successful in the market he is pursuing.
In this particular case, Mr. Cruz must understand all the theories involve in the economics to obtain the results he wants to achieve. Every decision, every change in price or strategy must be evaluated with extreme care to obtain a positive outcome and income, instead of losing assets.
This scenario is related to the economics course readings in all senses. We could find in the scenario concepts like supply and demand, price elasticity, elasticity of demand, opportunity cost, purposeful behavior, marginal analysis, scarcity, etc. Any person who would want to be an entrepreneur must be aware of the meaning of all this concepts and how to apply them in their business. In addition they most create a business plan and do research before making any decision. When we want to make a difference to impact our market, we have to know how to handle it and who is on top of the market so we can be a good competition to it. People have to look at your company as a real solution or alternative otherwise, you are just wasting your assets.
By definition economics is a social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity (McConnell & Brue, 2008). In other words,...