User Account

All Pages

Limited liability corporation specializing in new rap artist

Assignment Help Business Economics
Reference no: EM132167996

Bob's Underground, a limited liability corporation specializing in new rap artists (B.U. LLC, rap) has the following demand function:

Q = a + bP + cM + dR

where Q is the quantity demanded of the most popular product B.U. sells, P is the price of that product, M is income, and R is the price of a related product. The regression results are:

Adjusted R Square 0.7583

Independent Variables Coefficients Standard Error t Stat P-value

Intercept 424.008 32.786 12.932 2.98E-14

P -4.538 1.262 -3.595 0.001076

M -0.0034 0.001 -2.655 0.012263

R -3.75 1.377 -2.720 0.010475

a. Discuss whether you think these regression results will generate good sales estimates for B.U. LLC, rap.

Now assume that the income is $43,000, the price of the related good is $18, and B.U. chooses to set the price of its product at $14.

b. What is the estimated number of units sold given the data above? (round to nearest unit; no decimals)

c. What are the values for the own-price, income, and cross-price elasticities?

d. If P increases by 4%, what would happen (in percentage terms) to quantity demanded?

e. If M increases by 3%, what would happen (in percentage terms) to quantity demanded?

f. If PR decreases by 5%, what would happen (in percentage terms) to quantity demanded?

Reference no: EM132167996

Questions Cloud

Language difference in multicutural workteam : Trompenaar dimensions to analysis the weakness, Language difference in multicutural workteam, which lead to misunderstanding or mispreception.
Do you imagine that muslim homes in the suburbs : How tied to urban life and culture do you think the domestic interiors described in this article are?
What are the atcfs if the salvage value is estimated to be : A milling machine costing $18,000 will be depreciated using straight-line depreciation over 10 years. The firm is in the top tax bracket.
Evaluate approaches to performance measurement : Outline at least four criteria that should be used to evaluate approaches to performance measurement
Limited liability corporation specializing in new rap artist : Bob's Underground, a limited liability corporation specializing in new rap artists (B.U. LLC, rap) has the following demand function:
What are the btcfs and taxable income under macrs : Large Tech Manufacturing has the following estimates for a new semiconductor product. The machinery costs $800K, and it will have no salvage value.
Offered prizes to customers who could accommodate : Shiny Company limited, a shampoo manufacturer, offered prizes to customers who could accommodate a certain number of tokens from its shampoo bottles.
Determine the federal taxes owed by red ranger : The Red Ranger Company recorded revenues of $45,000 and recaptured depreciation of $1200 for the year just ended.
Risks are part of any project : Risks are a part of any project. Learning to manage them is a key part of being a project manager.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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