800 words Economic Commentary on Elasticity /supply and demand

Learning Goal: I’m working on a micro economics report and need support to help me learn.

I already have a commentary done and I received some feedback from my teacher. I wish to have these feedback applied in my commentary. This is the article I used for this commentary:https://news.bloomberglaw.com/coronavirus/one-year…

I will include the commentary that I already have done, but it is totally fine to make big changes or to even start over. Length of this commentary should be 800 words max (don’t need to include the graph title, description, bibliography)

1. Be more clear on elasticity

2. use demand and supply analysis

3. integrate key concepts (choose one out of 9 (inserted a photo with key concept) –> when writing it, please mention the key concept

4. change the graph (add trendlines and etc.)

5. use this format:

C – Conclusions

what can we conclude from the theory (that you’ve explained in your analysis)

L – Long-term and short-term effects

– is the change good in the short-term, but over a few years it will have undesirable consequences?
– will the policy be really hard on people in the short-run, but fixes the long-term problem?
-will this policy fix one problem, but create another?

A – Assumptions

– are there some assumptions being made, that the theory depends on that may not hold true? This is the same as “ceteris paribus” — the assumption that all other things are being held equal, when in fact they might not stay constant. Explain what might change and how that would effect your analysis
– what are the weaknesses in the theory?
– what is unrealistic about the theory?

S – Stakeholders

– What effects would this policy (i.e. an indirect tax) have on the government, consumers, producers and the rest of society?
-Policies (i.e. price ceilings) are often made with particular stakeholders in mind, so are there undesirable effects on other parties (i.e. price increases for consumers)?

P – Priorities

– discussing the priorities of a society, or the government is also a good way to keep things in perspective. A policy like subsidizing schools is good for families, good for the long term macro economy, but bad for tax payers who don’t have children, what are the priorities as a society?

– what are the advantages and disadvantages of this policy?
– what are the costs and the benefits of this policy?
– what are the arguments for and against this policy?
– this one is to double-check that you haven’t left anything out in the preceding ones

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