Assignment 1: Demand Estimation
Imagine that you work for the maker of a leading brand of low-calorie, frozen microwavable food that estimates the following demand equation for its product using data from their 26 supermarkets around the country for the month of April.
Note: The following is a regression equation. Standard errors are in parentheses.
QD = -4,000 - 200P + 32A + 100PX + 9Y
St. err: (1,500) (SS) (8.25) (45.75) (2.2)
R2 = 0.90 n = 26 F = 47.25
Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables:
- QD = Quantity demanded of a unit (dependent variable)
- P (in cents) = 300 cents per unit (price per unit)
- A (in dollars) = $750 (monthly advertising expenditures)
- PX (in cents) = 200 cents per unit (price of leading competitor's product)
- Y (in dollars) = $10,000 (per capita income)
Write a four to six (4-6) page paper in which you:
1. Compute the elasticities for each independent variable. Note: Write down all of your calculations.
2. Determine the implications for each of the computed elasticities for the business in terms of short-term and long-term pricing strategies. Provide a rationale in which you cite your results.
3. Recommend whether you believe that this firm should or should not cut its price to increase its market share. Provide support for your recommendation.
4. Assume that all the factors affecting demand in this model (A, PX, and Y) remain the same.
- Plot the supply curve, Qs, using the same prices as above: 100, 200, 300, 400, 500, 600, 700, and 800 cents.
1. Determine the equilbrium price and quantity. (Show this graphically and/or calculate using algebra.)
2. What changes in market conditions would shift the demand curve and the supply curve to the right.
3. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia or Investopedia do not qualify as an academic resources.
Assignment 2: Whistleblowing and Sarbanes-Oxley
Use the Internet or Strayer Library to research instances of whistleblowing in publicly traded companies within the last 12 months.
Write a two to three (2-3) page paper in which you:
1. Describe the key characteristics of a whistleblower, and briefly summarize one (1) researched instance of whistleblowing in one (1) publicly traded company within the last 12 months. Include the details of the issue that the whistleblower reported and the effect of the whistleblower's actions on both the whistleblower himself and the company.
2. Decide whether or not the whistleblower was justified in reporting the company's actions. Provide a rationale for your response.
3. Examine the extent to which the whistleblower would be protected under the Sarbanes-Oxley Act. Justify your response.
4. Use at least two (2) quality resources in this assignment. Note: Wikipedia is not an acceptable reference and proprietary Websites do not qualify as academic resources.
The specific course learning outcomes associated with this assignment are:
- Determine the underlying causes for passage of the Sarbanes-Oxley Act and determine protections afforded to whistleblowers.
- Use technology and information resources to research issues in law, ethics, and corporate governance.
- Write clearly and concisely about law, ethics, and corporate governance using proper writing mechanics.