Ask Question, Ask an Expert


Ask Microeconomics Expert

Q1) Assume a firm has following demand equation: Q = 1,000 - 3,000P + 10A

Where Q = quantity demanded

P = product price (in dollars)
A = advertising expenditure (in dollars)

Suppose for problems below that P = $3 and A = $2,000.

a. Assume the firm dropped price to $2.50. Would this be beneficial? Describe. Illustrate your answer using a demand schedule and demand curve.

b. Assume firm raised the price to $4.00 while increasing its advertising expenditure by $100. Would this be beneficial? Describe. Illustrate your answer with the use of a demand schedule and a demand curve.
(Hint: First create the schedule and curve assuming A = $2,000. Then create new schedule and curve assuming A = $2,100.)

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M922863

Have any Question? 

Related Questions in Microeconomics

Write a paper 2 - 4 pages based upon the following

Write a paper (2 - 4 pages) based upon the following activity: During an evening of television viewing, write down all of the advertisements you see (minimally use 10). 1. Which ones did you like? Which ones did you disl ...

Given the following chart answer the questions below

Given the following chart answer the questions below, assuming that all resources and technology are fixed for this farm. Corn(bu)    Soybeans(bu) 20,000             0 16,000             5000 12,000             9000 8,00 ...

Assignmentutilizing tools such as google scholar and scirus

Assignment Utilizing tools such as Google Scholar and Scirus locate the following: • An article advocating centralized management of the IT function; • An article advocating user-dominated management of IT. Discuss your ...

Paperpart i submissionit should be a complete polished

Paper Part I Submission: It should be a complete, polished artifact containing all of the critical elements of Final Project Part I, including Sections I and IV, which were not covered in the milestones. The final submis ...

Assignment--risk managementchoose one of the following

Assignment--Risk Management Choose one of the following topics and write a critical essay, with the word limit of 800±100, excluding references. Academic integrity: In order to ensure the academic integrity of your submi ...

Assignment external financinggenesis energys newly

Assignment: External Financing Genesis Energy's newly established operations management team decided to seek outside assistance in developing a long-term operating plan that also addresses the financial issues identified ...

Principles of economics1 which statement is truea today

Principles of Economics 1. Which statement is true? A) Today more workers in the U.S. are members of labor unions than any time in our history. B) Today labor unions are weaker than any time in the last 100 years. C) No ...

Microeconomichow would a low-cost price leader enforce its

Microeconomic How would a low-cost price leader enforce its leadership through implied threats to a rival? How does a firm become a "low cost" price leader? Discuss the specific type of market structure that implied thre ...

Assignmentdoes your organization have a project portfolio

Assignment Does your organization have a project portfolio management process in place? Write 1100 words in APA format in response Think of a project that you have worked on. Suppose your team and any contractors associa ...

Discussion questionsummationplease respond to the

Discussion Question Summation Please respond to the following: • Reflecting back on everything you have learned in this course, discuss the single most important lesson any entrepreneur should apply in order to be succes ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate