Topic Paper – Week 1

The Elasticity of Firearms and Their Supply and Demand

Submitted by

Amy Jewett Rawlins

Prepared for

John Machnic
BUSN 6120, Managerial Economics
Spring 1, 2013
Section OG
Webster University

13 January 2013

CERTIFICATE OF AUTHORSHIP: I certify that I am the author. I have cited all sources from which I used data, ideas, or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.

Amy Kathleen Jewett Rawlins 15 January 2013 Signature Date
Abstract
The three chapters that we studied this week highlighted many important principles in the study of Economics. One of those concepts is the …show more content…

Because of the revenue possibilities from gun sales going through the ceiling, many dealers and private citizens are taking advantage of the market and the potential hysteria that guns will somehow be outlawed. An example of the growing interest was reported on Channel 12 News, Phoenix, AZ, January 12, 2013, that so many local citizens turned out for that evening’s Gun Show, the Fire Marshall had to close it down because it was violating the fire code (January 13, 2012: Channel 12, Phoenix, AZ).
This is a perfect example of the inelasticity of guns. The economy is still very sluggish, the jobless rate reported by the Bureau of Labor Statistics being 7.8% and still firearms are a hot commodity and not one too many of late are willing to go without (Bureau of Labor Statistics.gov)
Another topic that drives the inelasticity of guns is personal safety and has been a major factor since the establishment of the United States of America. This is protection from rivals, criminals and the wildlife around them. Many people claim that this as their highest priority and the one that is driving them to find a firearm as soon as they can, in case they suddenly become unavailable to most law abiding citizens.
Unfortunately, even if guns are outlawed, there will always be a Black Market for firearms where the buyer can