26 Jul WHAT WOULD JOYS ADVERTISING EXPENDITURE HAVE TO BE TO COUNTERACT THIS EFFECT?
s Frozen Yogurt shops have enjoyed rapid growth in northeastern states in re Show more (Supply and Demand) Joys Frozen Yogurt shops have enjoyed rapid growth in northeastern states in recent years. From the analysis of Joys various outlets it was found that the demand curve follows this pattern: QD = 200 300P + 120I + 65T 250Ac + 400Aj Where QD = number of cups served per week; P = average price paid for each cup; I = per capita income in the given market (in $1000s); T = average outdoor temperature; Ac = competitors monthly advertising expenditures (in $1000s); Aj = Joys own monthly advertising expenditures (in $1000s). One of the outlets has the following conditions: P = 1.5 I = 10 T = 60 Ac = 15 and Aj = 10. A) Estimate the number of cups served per week by this outlet. Also determine the outlets demand curve both algebraically and graphically. B) What would be the effect of a $5000 increase in the competitors advertising expenditure? Illustrate the effect on the outlets demand curve algebraically and graphically. C) What would Joys advertising expenditure have to be to counteract this effect? 2.(Demand Elasticity) The demand curve for product a is given as Q = 2000 20P. a)Write equations for total revenue (TR) and marginal revenue (MR) in terms of Q. b)What will be the TR at P = $70? What will be the MR at that price? c)What is the point elasticity at P = $70? Based on this estimation of the price elasticity would you recommend using a price cut for increasing TR? d)If price were to decline to $60 what would be TR and MR then? e)At what price would elasticity be unitary? 3. (Supply and Demand) Joys Frozen Yogurt shops have enjoyed rapid growth in northeastern states in recent years. From the analysis of Joys various outlets it was found that the demand curve follows this pattern: QD = 200 300P + 120I + 65T 250Ac + 400Aj Where QD = number of cups served per week; P = average price paid for each cup; I = per capita income in the given market (in $1000s); T = average outdoor temperature; Ac = competitors monthly advertising expenditures (in $1000s); Aj = Joys own monthly advertising expenditures (in $1000s). One of the outlets has the following conditions: P = 1.5 I = 10 T = 60 Ac = 15 and Aj = 10. A)Estimate the number of cups served per week by this outlet. Also determine the outlets demand curve both algebraically and graphically. B)What would be the effect of a $5000 increase in the competitors advertising expenditure? Illustrate the effect on the outlets demand curve algebraically and graphically. C)What would Joys advertising expenditure have to be to counteract this effect? Show less
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.