Solving an “Economic Problem” Group Project Mr

Solving an “Economic Problem” Group Project

Mr. Johnson just graduated from college and recounted the issues he went through to buy his textbooks. He decided to solve the problem for other students. He decided to start an ecommerce business selling college student’s books.

He was able to raise $100,000 and needed the following to start the business:

1. Store front (office) - $24,000.00

2. 4 employees - $60,000.00

3. Computers & Equipment - $16,000.00

4. Computer software & Application - $25,000.00

Your group should solve this problem tying it to the semester work. First, begin with the definition (intro) of economics as the allocation of resources over your many needs. Second, talk about demand and supply, your group (supplier) and students (consumers). Students should have the option to buy e-text, borrow the book for a semester, or buy a hardcopy. Your website should be able to display different publishers and prices. Third, is there a trade off? Or what is your trade?

Your challenge is to show us how your group can allocate your limited resources over your numerous needs, realizing that your startup fund is less than the amount needed to satisfy all your needs. Should you use personnel or software or both? What’s your combination? More personnel or software?

What government policy do you believe will support your business, monetary or fiscal policy.

We will discuss more in class.