FIRM: CHARMIN TOILET PAPER

Several questions to consider: does your firm sell related products for which a cross-price elasticity of demand would be useful to know?Do competitors change the prices of their goods, and how could our business use elasticities to determine the best response to such a price change?Also, remember that we could put other economic variables in the elasticity equationswe could discuss the advertising elasticity of demand, for instance, which would estimate by what percentage the quantity demanded would change for a certain percentage change in the amount of advertising (and then we could use the idea of comparing marginal benefit with marginal cost to see whether we should increase advertising).

Alsowhile I do not expect you to have specific values for elasticities as an outsider to the firm (if you were working for the firm, you wouldor couldhave those values), what do you think the elasticities you included in your paper would beelastic, inelastic, strongly elastic, or strongly inelastic?Why?