Demand equation and determine its intercepts

Assignment Help Business Management
Reference no: EM131204108

Rail Tours, Inc. sells packaged tours on rail lines, including gourmet meals and a reserved bed. The most popular tours are in the autumn, when foliage colors are at their peak. The overnight package for Saturday and Sunday morning are especially heavily booked. A market survey firm has just completed a study in which they conclude that if the package cost is $200 per couple, then Rail Tours can expect to sell 400 spaces on a typical Saturday. If the price is raised to $225, then unit sales will drop to 390. If the price is raised further to $250, unit sales drop to 380.

(a) From the data given, write down the demand equation and determine its intercepts. Are there any precautions needed when operating at the extreme ends of the demand curve?

(b) The survey firm also reports that if per capita income changes, Rail Tours can expect a large change in bookings. In particular, if per capita income falls by 1%, then bookings will tend to fall by about 2%. Are tour packages a normal good? Explain.

(c) If you were responsible for making a forecast for bookings, would you accept this forecast as is? Or would you want additional information about demand? Explain.

Reference no: EM131204108

Eliminate testing for thc

1. How do you think employers should respond to the increased legal access to marijuana? 2. Can a case be made to eliminate testing for THC even in states that do not have leg

Explain why organizations need to develop a culture

Explain why organizations need to develop a culture that is innovative and participatory. Include in your answer consideration of the generation of new ideas within the orga

Design an effective bcp for a start-up or small business

Recommend at least two (2) strategies for continually improving the quality and effectiveness of the BCP. Support your recommendations with examples, depicting how the strat

Explain michael porter value chain model

Illustrate what are the similarities and differences among holistic marketing and integrated marketing communications? Explain Michael Porter’s value chain model. Illustrate w

Discuss the idea of needing to treat all employees equally

MGT491- Discuss the idea of needing to "treat all employees equally." What exactly is it that HRM/management needs to do? How do human resource professionals "treat employe

Challenges new director may face

What are some of the challenges this new director may face and how will he and she turn them into positives and how does he or she manage this team to make them successful?

Differences between formal and informal research

Write a paper that describes the differences between formal and informal research. What are the benefits and the drawbacks? Provide examples of when might you use each type

Number of elements influencing performance appraisal

There are a number of elements influencing performance appraisal such as social context, process variables, and structural variables (Kim, 2016). What is a structured variab

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd