A manufacturer of computer workstations gathered average monthly sales figures from its 56 branch offices and dealerships across the country and estimated the following demand for its product:

Q = +15,000 - 2.80P + 150A + 0.3Ppc + 0.35Pm + 0.2Pc

The variables and their assumed values are

Q = Quantity

P = Price of basic model = 7,000

A = Advertising expenditures (in thousands) = 52

P_pc = Average price of a personal computer = 4,000

P_m = Average price of a minicomputer = 15,000

P_c = Average price of a leading competitor's workstation = 8,000

Compute the elasticities for each variable. On this basis, discuss the relative impact that each variable has on the demand. What implications do these results have for the firm's marketing and pricing policies?

a)Utility function of Mr. Haroon is given by

Find the optimal quantities of the two commodities (X and Y) by using Lagrangian method, if it is given that price of commodity X is Rs. 5 per unit, price of commodity Y is Rs. 10 per unit and income of Mr. Haroon is equal to Rs. 1000.

b)Using indifference map elucidates at which point Mr. Haroon would be able to achieve maximum utility.

a)A grocery store notices that the cross-price elasticity between chocolate ice cream and chocolate syrup is - 0.3. The store is advertising a sale with ice cream prices reduced by 20%. By how much should they expect chocolate syrup sales to increase?

b)In the context of Pakistan's society identify the nature of demand or supply elasticity in the following cases. Also, justify your answer.

i.Demand for insulin

ii.Production of diamond

iii.Demand for artificial jewelry

iv Sale at bridal wears of HSY