Instructions for Essay #1 Please read all the instructions carefully and make sure you answer every single question. Answer all the questions like a report and not like a story (that is, state the question first and then succinctly answer the question). The paper doesn’t have to be long. In fact, it can be short as long as you answer all the questions completely, without leaving important information out. The paper will be due Thursday Oct 1 at 6pm via email. Please re read your Honor Commitment Letter and familiarize yourself with items 4, 6 and 7. Section 1 Choose a market (not a company) and identify the following: 1. What is the good or service being traded? 2. Is the product homogeneous or heterogeneous? 3. Who are the main competitors/producers? 4. Who are the regulators? 5. Can be consumers be segmented into groups? Elaborate 6. Are there any shadow markets? 7. Are there any other market agents? (such as intermediaries, dealers, brokers, etc) Section 2 Based on the market you chose in section 2, answer the following and explain your argument: 1. What are the substitute? 2. What are the complements? 3. Is this a normal good or service? 4. What other factors could determine demand? 5. What are the main drivers of supply? (land, labor, capital or technology) 6. Is the demand elastic or inelastic? 7. Is the supply elastic or inelastic? 8. A new tax would affect the suppliers or the consumers? 9. Would a new tax create more deadweight loss or more tax revenue? 10. Is the world price lower or higher than the domestic price? 11. Based on your answer for question 10, is this product more likely to be imported or exported?