Determination of inverse demand function, shift on the demand curve, elasticity of demand and supply and equilibrium price and quantity. Revenue and elasticity. Cross price elasticity of demand.
Your technical staff estimates the model of sales (units not revenue) for your product presented Sales = 28.0-4.29 price + 4.59 rival\'s price + 0.85 pop in region + 0.25 per cap income +1.09% pop<18+0.85 ad $.
The current values of the variables are:
|Population in region
|Per capital income
|% of population<18yrears
1. Illustrate what is the following for the demand curve also taking into account the values of thye variable? The inverse demand curve?
2.Illustrate what is your price elasticity of demand? If you raise yopur price, will your total revenue rise or fall?
3.If your product's cross price elasticity of demand? Does its magnitude make sense, compared to your product's own price elasticity? What is your product\'s elasticity of demand with respect to advertising expenditures?
4.What is your product's cross-price elasticity of demand? Does its magnitude make sense, compared to your product's own price elastisity? What is your product\'s elasticity of demand with respect to advertising expenditures?
5.What is coustomer surplus from ur product? Might this represent a bussiness opertunity for your firm? describe intivuduality.
6.What kinds of bussiness decission could be usefully aided by the kind of information contained in the demand curve and data above?