Setting up a model to forecast future demand, Microeconomics

Assignment Help:

Because of your reputation as an expert in economic analysis, you have been hired as vice president of a business consulting firm named Economists R Us.  This firm provides consulting services for a wide variety of manufacturing and retail companies.  You will be meeting with clients next week to review the following economic issues.  Your report should be a professional presentation.  These questions have multiple parts, so be sure to the answer is complete.

1.       Speedy Limo is a limousine service located on the north side of Cleveland.  It specializes in transporting people to and from Hopkins International airport, although it will deliver people anywhere in the Cleveland area.  It competes with taxis and public transportation as well as people deciding to drive their own cars.  The demand for the firm's services has been increasing as more consumers use the service for convenience and due to higher parking rates at the airport.  However, increases in gasoline prices and wage rates for drivers have increased costs for the firm.  Describe the supply and demand shifts that are occurring for this firm (graphs might help in your description).  What would happen to the demand curve if the major taxi companies lowered their prices?  If you were asked to forecast future demand for this firm, how would you set up a forecasting model?

2.      Sonic Boom Corporation sells drum sets.  At a price of $600 per set, they sold about 500 sets per month.  The new general manager for this product, Ella Sticity, decided that the company needed more revenues and increased the price to $700 per set.  However, Sonic Boom is now selling only 200 drum sets per month at the new price.  What is the arc price elasticity for this product?  Define price elasticity and how it should be used for pricing this product.  What do you recommend for the price of this product (e.g. stay at $700 or change, higher or lower?)  and what additional information would be useful in the pricing decision?  What would be your recommendations for setting up a model to forecast future demand for this product?

 


Related Discussions:- Setting up a model to forecast future demand

Primary inputs, Normal 0 false false false EN-IN X-NO...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Economic cycle, Economic Cycle The economic cycle is the long-standing...

Economic Cycle The economic cycle is the long-standing sample of alternating times of economic growth (expansion) and decline (recession), followed by changing economic indica

Exchange rates, EXCHANGE RATES: The current unit focuses on exchange r...

EXCHANGE RATES: The current unit focuses on exchange rates and is a more in-depth study of foreign exchange markets from the perspective of financialeconomics.You have been ac

Official reserve account, Official Reserve Account: This part of the bal...

Official Reserve Account: This part of the balance of payments informs us about how the balance of both current and capital accounts taken together is settled.Transaction in thi

PPC, how to find opportunity cost on PPc

how to find opportunity cost on PPc

What is the equilibrium quantity?, Supply and demand for a given type of MP...

Supply and demand for a given type of MP3 player are given by the following equations: P=980-1.5Qd P=20+0.9Qs

Determine the optimal number of ads -regression, You work in the front offi...

You work in the front office of the Spokane Indians, a minor league baseball team that plays in the Northwest League of Minor League Baseball. Your boss wants to know the different

Test, how much for taking a test

how much for taking a test

Economics 262, A recent national survey found that high school students wat...

A recent national survey found that high school students watched an average (mean) of 7.2 DVDs per month with a population standard deviation of .90. A random sample of 35 college

What are possible negative consequences of economic growth, What are the po...

What are the possible negative consequences of economic growth in a developing country? Define economic growth as an enhance in GDP during a given time period, and then define

Write Your Message!

Captcha
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