02 Jun Question Imagine that you work for the maker of a leading brand of l
Question
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.
Estimated Demand Equation ? QD = – 5200 – 42(P) + 20(Px)+ 0.52( I )+ 0.20(A) + 0.25(M)
Standard Errors of Estimate ? (2.002) (17.5) (6.2) (2.5) (0.09) (0.21)
(for calculating “t-values”
Other Regression statistics n = 26 R2 = 0.55 F = 4.88
QD = Quantity demanded of 3-pack units for your company’s frozen food
P (in dollars) = Price of the product = $5 per 3-pack unit
Px (in dollars) = Price of leading competitor’s product = $6 per 3-pack unit
I (in dollars) = Per capita income of the standard metropolitan statistical area
(SMSA) in which the supermarkets are located = $5,500
A (in dollars) = Monthly advertising expenditures = $10,000
M = Number of microwave ovens sold in the SMSA in which each
Supermarket is located = 5,000
a) Plot the demand curve for your firm by using the following prices for its 3-pack unit: $2, $4. $6, $8, and $10. Hint: Place the price (P) on vertical axis and the quantity demanded (QD) on the horizontal axis.
b) Plot the corresponding supply curve on the same graph using the following supply function
QS = -79.1 + 79.1(P) with the same prices as in part a. (Remember: Price is placed on the vertical
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.