Carlos Cruz Price Elasticity Scenario

Price Elasticity Scenario
Carlos Cruz is an inventor entrepreneur in High Tech Digital Industries which is conducting research to develop a strategic business. The main idea is to market a new product based on the technology. It's taking the words printed, for example: books or text materials, and create a digital product that people can see or hear. The profitability of the business is based on that we are in a world constantly globalized, where digital replaces the traditional. Carlos is assessing its business strategy to consider some basic decisions as to the operation of the market.
The concept of scarce resources is essential to economics.   According to Mc Connel-Brue (2008), “Society has limited or scarce economic resources meaning all natural, human, and manufactured resources that go into the production of goods and services”.   Due to our resources being limited, we must decide what we will have and what we must do without.   Similarly, the scenario presents various resource options Carlos can use to digitize books.   Carlos must decide between continuing to do the work himself or outsourcing it in Puerto Rico at approximately $10 an hour or overseas at $2 an hour.   Carlos realizes that his own capacity to continue to digitize books is limited or scarce and had poor use of his time.
Evaluating business strategy allowing to Carlos offer an attractive product for consumers, these economic principles that are present on the stage can be identified.   First the model of economic here is the market economic.   Some of the basic principles are the concept of supply and demand. Carlos would have to assess what price the product set and those who need to meet the demand of the market. Taking into account the law of demand which establishes that as price increases, the demanded amount decreases, because consumers don't want to pay the higher cost and choose for alternative products or substitutes.   And taking into account the law of the offer which states that if...