ECO415 Week 1 Individual Assignment Basic Concept Paper

ECO 415 Week 1 Individual Assignment: Basic Concept PaperIndividual Assignment: Basic Concepts Paper· Resource: Supply and Demand simulation located on your student website· Prepare a 1,050- to 1,400-word paper that discusses basic concepts in applied economics in the context of the simulation. Answer the following questions in the paper:How do changes in the business environment cause changes in supply and demand? Cite and explain at least two examples from the simulation.Why is marginal analysis important when making business decisions? How is marginal analysis used to respond to shifts in supply and demand?Cite and explain at least one example from the simulation.How did your team determine appropriate output levels in the simulation?Cite at least two examples.Were your team’s output decisions successful? If so, explain specifically how your decision making process led to financial success. If not, identify any mistakes and explain what your team could have done differently.What fixed and variable costs does the operating company in the simulation have? Cite at least two examples for each.Describe a market situation in which the operating company faces economic difficulties and the need to cut costs. What cost cutting strategies might the operating company use to remain profitable? What would be the benefits and drawbacks of each? Format your paper consistent with APA guidelines