Describe in detail the characteristics of the consumers in the market. What does demand look like in your market? Is t

**SERVICE IS DOG WALKING/SITTING***

This week, you will continue the development of your market by describing consumer preferences and how producers address these needs. Typically, this assignment requires 3-4 pages.

Preferences and Production **SERVICE IS DOG WALKING/SITTING***

• Describe in detail the characteristics of the consumers in the market.
• What does demand look like in your market?
• Is this demand elastic or inelastic? Why?
• Are there obvious substitute goods or services available?
• Is there a decreasing marginal utility of consumption? Explain.
• Do your best to describe the utility function for a typical consumer of your particular product or service. Justify the functional form youve chosen. Here’s a good explanation of utility function (Links to an external site.) to help you; here’s another (Links to an external site.). You can be creative here, but do put some research into this step. Really think about your product/service and the “satisfaction” that consumers receive from it over time.
• If your market has producers:
  • Describe the production process in detail for your product or service. Are there high fixed costs? Are there high variable costs? What are the production inputs?
  • In general (non-mathematical) terms, describe the production function. Then, relate this explanation to your specific product or service. You can use your textbook, and/or this resource (Links to an external site.) to help you.
• If your market involves only buyers and sellers (e.g., the FCC spectrum auction or the residential housing market), describe (as precisely as possible) the rules of the market.