{"id":16281,"date":"2021-11-16T17:38:26","date_gmt":"2021-11-16T17:38:26","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/week-3-the-tariff-eco-550-managerial-economics-and-globalization-strayer-university\/"},"modified":"2021-11-16T17:38:26","modified_gmt":"2021-11-16T17:38:26","slug":"week-3-the-tariff-eco-550-managerial-economics-and-globalization-strayer-university","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/week-3-the-tariff-eco-550-managerial-economics-and-globalization-strayer-university\/","title":{"rendered":"Week 3 the tariff | ECO 550 Managerial Economics and Globalization | Strayer University"},"content":{"rendered":"
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The Tariff,\u00a0the Price Elasticity of Demand and the Impact on Company Profits<\/strong><\/p>\n

Here is some help with elasticity.\u00a0\u00a0<\/strong>https:\/\/cdnapisec.kaltura.com\/index.php\/extwidget\/preview\/partner_id\/956951\/uiconf_id\/38285871\/entry_id\/1_f4j9no40\/embed\/dynamic<\/strong><\/u><\/a><\/p>\n

In this week’s discussion your are going to be the CEO of a company.\u00a0\u00a0In anticipation of the upcoming quarterly disclosure of profits, you prepare your Board of Directors for the challenge that US Tariffs on Chinese\u00a0Imports is having on profits.\u00a0 Please\u00a0make yourself CEO of only one of these hypothetical companies.<\/strong><\/p>\n

‘Tis the Season-\u00a0‘Tis the season is one of the largest importers of holiday decorations and the summer quarter is devoted to importing decorations such as lighting, artificial trees, table runners,\u00a0 outdoor yard decorations all of which have to be ready to ship by early fall. In fact we at ‘Tis the Season has a highly inelastic supply curve, they ramp up to produce decorations for each season and then once that season has been shipped they move on to the next season.\u00a0 Fortunately the price elasticity of demand for almost all of your products is 0.19.<\/p>\n

We Build Big\u00a0–\u00a0We Build Big is one of the largest developers of residential structure in the US.\u00a0\u00a0We Build Big,\u00a0builds every thing from apartment complexes to new single family homes.\u00a0\u00a0Critical materials such as lumber,\u00a0gypsum board,\u00a0fabricate metal etc are largely imported. We Build Big know that our production process, the supply curve, is\u00a0relatively inelastic.\u00a0The concern over profits is that the price elasticity of demand for housing is\u00a01.0.<\/p>\n

Very Big US Auto\u00a0–\u00a0Very Big US Auto is one of the oldest and one of the largest auto manufacturers of auto in the US.\u00a0\u00a0Very Big US Auto’s supply chain is highly dependent components manufactured in China and assembled in the US. Very Big US Auto knows that the price elasticity of\u00a0supply is relatively inelastic and that\u00a0then the price\u00a0elasticity of demand which is1.2.<\/p>\n

Now explain:<\/strong><\/p>\n