Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. (10 Points) As the manager of your product, you are in the best position to provide a best guess for intercept a, and slope

image text in transcribed
2. (10 Points) As the manager of your product, you are in the best position to provide a best guess for intercept "a", and slope "'b. While you cannot estimate these numbers using statistical methods, your knowledge of your product and the market in which you want sell your product, should equip you with the expertise to have a best professional guess for intercept "a", and slope "b. In other words. these numbers should be consistent with your pricing policy and demand conditions for your product. These are not simply some random numbers you guess. If you know your product, you should be able to come up with a rational guess. Describe the process by which you guessed intercept "a". and slope "".b This description crucially depends on fully understanding what these parameters mean and imply. Simply stating that the numbers are the intercept and slope will not give you any credit. Feel free to round the number so that you can work with it easily and that your calculations don't get overly complicated. 2. The SWOT (strength, weakness, opportunities and threats) analysis is what we can use to guess intercept "a", and slope "b" I cannot charge more than other competitors in the market for essay writing because the information on freelance services is available widely and it is very easy to loose customers. 3. (45 Points) This question has four sections. Each section asks you to calculate a set of numbers based on the following description. Specify a range of prices for your product which must include high and low prices. Obviously, you can sell your product for any price you want. However, you are asked to come up with a range of numbers for the price of your product. For example, choose three high prices below the highest price you can sell the product for and three low prices (short of giving your product away free of charge), and one price in the middle of the high and low. You should identify at least 7 price points between the maximum and minimum price. 1. (10 Points) For each price point (including the maximum and minimum), calculate the quantity demanded from your demand equation for that price. You should show how this calculation was done mathematically for at least one price. 2. (10 Points) For every pair of price and quantity (question 3 and 3a) , calculate the point price elasticity of demand at that point (this is not an arc elasticity). As in in section C(a), you should show your work for at least one calculation. 3. (10 Points) For what pricequantity combination is the price elasticity of demand for your product is 1? Again, you should show your work or

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economic Change In Asia Implications For Corporate Strategy And Social Responsibility

Authors: M Bruna Zolin, Bernadette Andreosso O'Callaghan, Jacques Jaussaud

1st Edition

1317286650, 9781317286653

More Books

Students also viewed these Economics questions

Question

16.2 Explain three trends in the labour movement in Canada.

Answered: 1 week ago