Imagine that you work for the maker of a leading brand of

Reference no: EM13391422

Imagine that you work for the maker of a leading brand of low-calorie microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April. For a refresher on independent and dependent variables, please go to Sophia’s Website and review the Independent and Dependent Variables tutorial, Determine the implications for each of the computed elasticities for the business in terms of short-term and long-term pricing strategies. Provide a rationale in which you cite your results. Recommend whether you believe that this firm should or should not cut its price to increase its market share. Provide support for your recommendation. Assume that all the factors affecting demand in this model remain the same, but that the price has changed. Further assume that the price changes are 100, 200, 300, 400, 500, 600 dollars. Plot the demand curve for the firm. Plot the corresponding supply curve on the same graph using the supply function Q = 5200 + 45P with the same prices. Determine the equilibrium price and quantity. Outline the significant factors that could cause changes in supply and demand for the product. Determine the primary manner in which both the short-term and the long-term changes in market conditions could impact the demand for, and the supply, of the product. Indicate the crucial factors that could cause rightward shifts and leftward shifts of the demand and supply curves. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are: Analyze how production and cost functions in the short run and long run affect the strategy of individual firms. Apply the concepts of supply and demand to determine the impact of changes in market conditions in the short run and long run, and the economic impact on a company’s operations. Use technology and information resources to research issues in managerial economics and globalization. Write clearly and concisely about managerial economics and globalization using proper writing mechanics.

Use Following reference please
The following is a regression equation. Standard errors are in parentheses for the demand for widgets.
QD = 20,000 - 10P + 1500A + 5PX + 10Y (5.234) (2.29) (525) (1.75) (1.5) R2 = 0.85, n = 120, F = 35.25

Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables:

Q = Quantity demanded
P (in cents) = Price of the product = 8,000
PX (in cents) = Price of leading competitor’s product = 9,000
I (in dollars) = Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarkets are located = 5,000

Reference no: EM13391422

Questions Cloud

Are us ethical standards applicable worldwide explain your : 1. what are the international and regional institutions that comprise the global monetary and financial system? what

Vans company purchased a piece of equipment at the : vans company purchased a piece of equipment at the beginning of 2011. the equipment cost 860000. it has an estimated

Evaluate product innovation at gillette throughout its : 1. evaluate product innovation at gillette throughout its history. has gillette been a victim of its own success?2. has

Calculate a table of interest rates for 5 years based on : calculate a table of interest rates for 5 years based on the following informationthe pure interest rate is 2inflation

Imagine that you work for the maker of a leading brand of : imagine that you work for the maker of a leading brand of low-calorie microwavable food that estimates the following

Assume that velocity is constant at 9 but nominal money : suppose that velocity is constant at 9 but the nominal money supply increases from 1.5 to 1.8 trillion. what must

Analyze the pros and cons of ambulatory services as : 1 categorize the various levels as well as the evolution of steps in the joint public-private responsibility structure

One role of seasoned experienced human resources : one role of seasoned experienced human resources professionals is to mentor junior professionals. you have decided to

Sherri uses her credit card to pay for new transmission : sherri uses her credit card to pay for new transmission that ended up totaling 1050.25. she can pay off up to 400 a

User Account

All Pages