Reference no: EM13791874
Imagine that you work for the maker of a leading brand of low-calorie, frozen microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April.
Note: The following is a regression equation. Standard errors are in parentheses.
QD = -2,000 - 100P + 15A + 25PX + 10Y
(5,234) (2.29) (525) (1.75) (1.5
R2 = 0.85 n = 26 F = 35.25
Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables:
QD = Quantity demanded of a unit (dependent variable)
P (in cents) = 200 cents per unit (price per unit)
PX (in cents) = 300 cents per unit (price of leading competitor's product)
Y (in dollars) = $5,000 (per capita income in the Standard Metropolitan Statistical
Area (SMSA) where the 26 supermarkets are located)
A (in dollars) = $640 (monthly advertising expenditures)
1. Compute the elasticities for each independent variable. Note: Write down all of your calculations.
4. Assume that all the factors affecting demand in this model remain the same, but that the price has changed. Further assume that the prices are 100, 200, 300, 400, 500, 600 cents.
Plot the demand curve for the firm.
Plot the corresponding supply curve on the same graph using the following MC / supply function (with the same prices 100, 200, 300, 400, 500, and 600 cents):
QS = -7909.89 + 79.0989P
Determine the equilibrium price and quantity.
The far and contract provisions for protection
: Assignment 4: The FAR and Contract Provisions for Protection Due Week 8 and worth 150 points Imagine that you are a contracts officer for the Internal Revenue Services (IRS), and that your supervisor has tasked you with the procurement of a new softw..
|
Accounting break-even level of sales
: What is the accounting break-even level of sales in terms of number of diamonds sold? What is the NPV break-even level of sales assuming a tax rate of 35%, a 10-year project life, and a discount rate of 12%?
|
Analyze the influence of security threat groups
: The PowerPoint will account for 15% of your final grade and is a presentation providing an informational analysis of how prisons control the influence of security threat groups (STGs).This assignment is designed to demonstrate your ability to analyze..
|
What is the companys current channel strategy
: What is the companys current channel strategy - What is the reasoning behind this channel selection and how are the companys competitive position and brand loyalty related to its channel selection?
|
Compute the elasticities for independent variable
: Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables:
|
The united states attorney
: You are a paralegal working in Plentibux & Moore, a boutique Richmond, Virginia law firm that specializes in white-collar criminal defense. The senio partner in the firm, Bob Plentibux calls you in to his office and tells you that he has a hot issue ..
|
The staff audit group and the managers in the plant
: What were the causes and antecedents of the conflict between the staff audit group and the managers in the plant?
|
Write an essay to illustrate your process for balancing time
: Write an essay to illustrate your process for balancing your time and managing your schedule for the purpose of helping other distance education students learn how they can do the same.
|
Examine multicultural hot spots in assessment and diagnosis
: Examine Multicultural Hot Spots in Assessment and Diagnosis
|