Assessment Brief

Primary Task Response:  600–800 words that respond to the following questions with your
thoughts, ideas, and comments. This will be the foundation for future discussions
by your classmates. Be substantive and clear, and use examples to reinforce
your ideas. APA with reference
Additional Information: The board of directors at AutoEdge is actively discussing
several options to address flagging revenue. One option continues to surface
during each board meeting; that is, relocating the manufacturing operation back
to the United States. Longtime Chief Financial Officer, Ingrid Adams, leads the
group that is in favor of this option.
Ingrid Adams approaches you in the company break room.
“Hello,” she says. “I’m glad I saw you.”
“Hi,” you say. “What can I do for you?”
“I have a question about economics,” she says. “I
think you can help me explain something to some shareholders on the
board.”
“Economics! My favorite subject,” you say.
“What’s your question?”
“If AutoEdge decided to increase its prices and return to
the United States,” she says, “how would this action affect consumer
demand? I want to know your opinion about elasticity.”
“Sure,” you say. “So you want to know if the
elasticity for auto parts is considered to be relatively inelastic, relatively
elastic, unitary elastic, perfectly elastic, or perfectly inelastic.
Right?”
“Exactly,” she says.
“I have an opinion,” you say. “Do you want to
talk about it now, or do you want something in writing?”
“Something in writing would be best,” she says. “Would you explain your opinion so
that I can respond to questions from other members of the board, too?”
“I’d be glad to,” you say. “I’ll put something
together this afternoon and get it to you before I leave today. Is that soon
enough?”
“Perfect,” she says. “Thanks for your help.”