. Answer the following questions sufficiently.
dow Help 100% Tue 10:10 ds x L Refunds | x Homewor X Wisconsin x WisconsinEco 11 02/assignments/1938646 tudentprinting.U. air Rodan + Fields Lif... I Public Health and. Sign In TIVING WOIR IT'S Instructions: Answer the following questions as completely and concisely as possible. Students must submit electronic versions of their answers via Canvas. Electronic versions can be created by either scanning hand-written answers and converting them to a .pdf file or by taking pictures of hand-written answers and combining the picture files into a single .pdf file. Review the syllabus for other suggestions on how to create .pdf files. Consult the course schedule or Canvas calendar for the due date/time. Late submissions will not be accepted. Each question is worth six points each, giving a total of 60 points. Earn as many of them as possible. 1. An early freeze in California sours the lemon crop. Explain what happens to consumer surplus in the market for lemons. Explain what happens to consumer surplus in the market for lemonade. Illustrate your answers with diagrams. 2. Suppose the demand for French bread rises. Explain what happens to producer surplus in the market for French bread. Explain what happens to producer surplus in the market for flour. Illustrate your answers with diagrams. 3. Suppose a technological advance reduces the cost of making computers. a. Draw a supply-demand diagram to show what happens to price, quantity, consumer surplus, and producer surplus in the market for computers. b. Computers and typewriters are substitutes. Use a supply-demand diagram to a show what happens to price, quantity, consumer surplus, and producer surplus in the market for typewriters. Should typewriter producers be happy or sad about the technological advance in computers? c. Computers and software are complements. Draw a supply-demand diagram to show what happens to price, quantity, consumer surplus and producer surplus in the market for software. Should software producers be happy or sad about the technological advance in computers? D A X1. consider the following demand/supply schedules for cases of (24) Pepsi in a small city ... Price (P)$/case) Quantity demanded Quantity Supplied Surplus/shortage (Qs/month) (QS/Month) $10.00 0 1000 9.50 100 900 9.00 200 800 8.50 300 700 8.00 400 600 7.50 500 500 7.00 600 400 6.50 700 300 6.00 800 200 5.50 900 100 a) draw a diagram of the market for cases of Pepsi, including both the demand and supply curves bj what is the equilibrium price and quantity of Pepsi in this market? c) Fill in the surplus/shortage column on the right-hand side of the chart d) Suppose that grocery stores in this city are currently selling Pepsi for 58.50/case. What is the condition of the market at this price, and what adjustments will take place? Explain e) Suppose that each of the following changes take place, coteries paribus. For each change, draw a separate demand/supply diagram that illustrates how the equilibrium price and quantity will be affected... There is a decrease in the price of Pepsi, all else equal ii) There is a decrease in the price of Coca-Cola, all else equal ili) Consumer incomes increase, all else equal iv) Electricity prices increase for PepsiCo, the company that produces Pepsi. v) PepsiCo acquires new machinery that is able to can soft drinks more quickly f) Wing a written explanation and diagrams, explain the difference between a "Change in Quantity demand" and "a change in demand"Chapter 8 Pricing strategies This chapter teaches of different pricing strategies for your products or services and shows how these can sometimes be set based on industry norms. Discussions of customer credit options are also discussed with the advantages and disadvantages of offering these. Pricing positions the product or service. Pricing strategy should match firm strategy. Following a logical process can lead to better pricing. A. Value pricing-offering more for less. B. Prestige pricing-setting a high price to convey high quality or uniqueness. C. Cost-plus pricing-applying a factor to calculated costs. D. Penetration pricing-charging lower initial prices to capture market share. E. Skimming pricing-charging higher initial prices. F. Meet-or-beat-the-competition pricing-just what it says. G. Follow-the-leader pricing-using a competitor as a model for your pricing. H. Personalized (dynamic) pricing-charging different prices as the market will bear. Variable Pricing - provides different prices for a single product or service. Price lining-setting a range of pricing levels. Questions :. Discuss the pros and cons of the following pricing strategies-value pricing, keystoning, cost-plus, penetration strategy, skimming strategy, and meet or beat the competition-for each of your businesses. Present your recommendations for each other to the class. 2. What is the relationship between price and company image? Why is it important? a. What is "penetration" pricing? Can you think of an example of a company that has used penetration pricing to introduce a new product? What firm is it and what is the example? .. What is the relationship between pricing and competition?14:06 8/16: MI
