ECO 600 Managerial Economic
Week 6 Executive Summary for Team Assignment
Economic Analysis
Team Buchanan is honored to have been chosen by your firm to provide an economic
analysis for pricing this new device. Because your business is the first to sell this product, you
are considered an adopter. Being an adopter can be very risky for a business. Lisandra and
Carson both agree that there could possibly be several glitches or technology obstacles that
could have been resolved if you were to hold out and become a substitute. We have evaluated the
elasticity of demand, rational consumption, market separation and several other factors to come
up with our conclusion. Pricing this new product at a lower price would be beneficial for your
firm.
Elasticity of Demand
