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Qp = 500 - 100*Pp + 1.25*A - 20*Ps + 2*I

Pp = $1.00

A = $200

Ps = $1.00

I = $12000

a) Calculate the coefficients for price, advertising, income and cross-price with soda pop.

b) If the current company cost for a bag of popcorn is $0.45, including cost of corn, cost to pop it and the bag, is this the profit maximizing price?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9472907

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