Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Problem:

Suppose that you work for maker of a leading brand of low-calorie microwavable food which estimates the following demand equation for its product using data from 26 supermarkets around the country for month of April.

For a refresher on dependent and independent variables, please go to Sophia’s Website and check the Independent and Dependent Variables tutorial, located at:

http://www.sophia.org/tutorials/independent-and-dependent-variables--3.

prepare down four to six (4-6) page paper in which you:

1. find out the elasticity’s for each independent variable. Note: prepare all of your computations.

2. Find out the implications for each of the evaluated elasticity’s for business in terms of short-term and long-term pricing strategies. Give a rationale in which you cite your results.

3. Suggest whether you believe that this firm should or shouldn’t cut its price to raise its market share. Give support for your suggestion

4. Suppose that all the factors affecting demand in this model remain the same, however that the price has changed. Further suppose that the price changes are 100, 200, 300, 400, 500, 600 dollars.

a. Plot the demand curve for firm.

b. Plot the corresponding supply curve on same graph by using the supply function Q = 5200 + 45P with the same prices.

c. Find out the equilibrium price and quantity.

d. Highlight the important factors which could cause changes in supply and demand for product. Find out the primary manner in which both the short-term and long-term changes in market situations could impact the demand for, and supply, of product.

e. Point to the crucial factors which could cause rightward shifts and leftward shifts of demand and supply curves.

f. Employ at least three quality academic resources in this assignment.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M914046

Have any Question? 


Related Questions in Macroeconomics

Pice discriminationassume that there is a single monopoly

Price Discrimination Assume that there is a single monopoly supplier of gadgets, but there are two distinct types of consumers, with the following individual demand curves: Type α: qα = 100 - 2pα Type β: qβ = 80 - 3pβ Th ...

The scottish milk industry is perfectly competitive and is

The Scottish milk industry is perfectly competitive, and is initially in long-run equilibrium, with 1000 dairy farmers each producing 1000 liters of milk per day, so 1 million liters per day in total. Draw a diagram show ...

What is the role of government explain the microeconomic

What is the role of government? Explain the microeconomic and macroeconomic policies of the government.

Using aggregate demand-aggregate supply analysis explain

Using aggregate demand-aggregate supply analysis, explain the impact of an increase in consumer credit on the equilibrium price level and equilibrium real income in the short-run. Indicate which curve or curves would shi ...

Assignment lasa supply and demand in a global marketanswer

Assignment: LASA: Supply and Demand in a Global Market Answer the following questions using examples and applications from the readings. Justify your answers using economic concepts and ideas as they apply. Each response ...

Please help with this assignment read the articles and

Please help with this assignment. Read the articles and discuss the problems of Economic Inequality in the US Economy, summarize key points from the articles. 1. Making a Mockery of the American Dream http://www.usnews.c ...

What is the formula used to calculate the value of a

What is the formula used to calculate the value of a recently deceased person using the human capital approach, with a discount rate of 5%?

Suppose the inverse demand is given p75-05q if the

Suppose the inverse demand is given P=75-0.5Q if the incumbent continues to produce 20 units output, which of the following equations best summarizes the potential entrants residual demand curve?

A perfectly competitive industry consists of ten firms five

A perfectly competitive industry consists of ten firms. Five firms have marginal costs given byMC = q + 1, the other five have marginal costs given by MC = q + 2. The demand curve is D =135 - 5P. Calculate the level of p ...

A firm plans to raise 4 million by borrowing at an interest

A firm plans to raise $4 million by borrowing at an interest rate of 16% and to raise $1 million by issuing common stock. The firm's stock has a beta coefficient of 2, the risk free interest rate is 6%, the average rate ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro