Black Friday has become a global phenomenon, with businesses slashing prices to attract millions of shoppers. However, these price adjustments are not random; they are carefully planned to balance supply and demand, maximize revenue, and avoid excess inventory. This project challenges students to explore how businesses adjust prices on Black Friday and analyze the economic principles behind these pricing strategies.

Students will research the economic forces behind Black Friday pricing, focusing on how businesses respond to shifts in demand. They will analyze the role of market equilibrium, where supply meets demand at an optimal price, and investigate how retailers use temporary price reductions to stimulate consumer purchases. Businesses strategically lower prices to clear inventory, attract long-term customers, or compete with rivals, often adjusting prices based on elasticity of demand—how sensitive consumers are to price changes.

A key aspect of this research will be understanding why some discounts are steeper than others. Students should examine why high-margin products, like electronics and luxury goods, see aggressive price cuts, while necessities, like groceries, may not be discounted as heavily. Additionally, they should explore how online retailers, such as Amazon, use dynamic pricing algorithms to adjust prices in real-time based on consumer behavior and competitor pricing.

The final research paper should provide a detailed analysis of Black Friday pricing, supported by real-world data, case studies, and economic theory. Students should also evaluate whether Black Friday is truly beneficial for businesses and consumers, discussing potential downsides such as artificially inflated pre-sale prices, excessive consumer spending, and supply chain disruptions. By the end of the project, students will have a deeper understanding of how businesses use pricing strategies to achieve market equilibrium in response to seasonal demand fluctuations.