Determine the advertising elasticity of demand

Assignment Help Business Economics
Reference no: EM13247366

General Cereals is using a regression model to estimate the demand for Tweetie Sweeties, a whistle- shaped, sugar- coated breakfast cereal for children. The follow-ing ( multiplicative exponential) demand function is being used: QD = 6,280P. - 2.15A1.05N3.70 where QD = quantity demanded, in 10 oz: boxes P = price per box, in dollars A = advertising expenditures on daytime television, in dollars N = proportion of the population under 12 years old

a.Determine the point price elasticity of demand for Tweetie Sweeties.

b.Determine the advertising elasticity of demand.

c. What interpretation would you give to the exponent of N? 

Reference no: EM13247366

Questions Cloud

Determine the approximate value of the input impedance : A parallel RLC network is constructed with a 5 mH inductor, and the remaining component values are chosen such that Q0 = 6.5 and ω0 = 1000 rad/s. Determine the approximate value of the input impedance magnitude for operation
Find the final angular velocity of the merry : A 15 kg child sits on the edge of at 2 m radius, 200 kg merry go round. A father as been getting a little carried away, What is the final angular velocity of the merry go round
Suppose disposable income is expected to increase by 5 perce : Suppose disposable income is expected to increase by 5 percent next year. Assuming all other factors remain constant, forecast the percentage change in the quantity of haddock demanded next year.
Determine the point price and income elasticities for house : Determine the point price and income elasticities for household furniture
Determine the advertising elasticity of demand : The follow-ing ( multiplicative exponential) demand function is being used: QD = 6,280P. - 2.15A1.05N3.70 where QD = quantity demanded, in 10 oz: boxes P = price per box, in dollars A = advertising expenditures on daytime television, in dollars N = p..
State the condensed structure of the primary alcohol : Write the condensed structure of the primary alcohol (RCH2-OH type) with the general formula C4H10O.
Determine the batterys internal resistance : A battery with an emf of 12.0 V shows a terminal voltage of 11.0V when operating in a circuit with two lightbulbs rated, What is the battery's internal resistance
Calculate what current is in the transmission line : Electricity is distributed from electrical substations to neighborhoods at 15,000 Volts, to a transformer on utility poles near homes, where is it stepped down to 120 Volts for household use.
Assume that the spinner is separated into equal section : There were 13,249 weddings in Springs City last year. According to state records, notaries public performed 17% of the weddings. How many weddings were not performed by notaries public?

Reviews

Write a Review

 

Business Economics Questions & Answers

  Which principle of tax equity-the benefit principle

Which principle of tax equity-the benefit principle or the ability-to-pay principle-is in closest agreement with your personal idea of what is fair? Develop a "position statement" based on your response.

  Illustrate what is cost of internal common equity for pathos

Dividends paid last year were $.70. Flotation costs on issuing stock will be 10 percent of market price. Dividends and earnings per share are projected to have an annual growth rate of 15 percent. Illustrate what is cost of internal common equity ..

  Production technology exhibit

Does the production technology exhibit increasing/decreasing/constant returns to scale.

  Why this game is called a cooperative game

In recent yrs, persons also state governments have sued various tobacco companies to compensate for illness also injury allegedly cause d by cigarette smoking.

  Elucidate the impact does the dollar appreciation

Elucidate the impact does the dollar appreciation have on the firm's international competitiveness.

  Nine slugs per hour

The law in Ruba says no worker shall be paid less than nine slugs per hour.

  Consider a small country that exports steel

Consider a small country that exports steel. Assume that a "pro-trade" government deicdes to subsidize the export of steel by paying

  Highly populated areas with target markets

They are all highly populated areas with target markets suitable for your products. One factor is which there several formidable competitors in all of the areas

  Nations gdp

Exportof goods and services to foreigners is $1 million and import of goods and services from foreigners is $1.5 million.

  Trade that result from having a monopoly

Sketch a graph which shows the lost gains from trade that result from having a monopoly.

  The difference between the benefit

The value of the action The cost of the action The difference between the benefit and the cost of the action

  Provide optimal wage-bonus package

Provide optimal wage-bonus package, compute this employees' effort, expected payoff and employer's profit. Draw a game tree for employer-employee game in parts a-c.

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