Question
From a survey conducted on 100 households of Serity Soap consumer, the request function is obtained as follows: Qdx = 26.0071 - 3.6075 Px +
From a survey conducted on 100 households of "Serity" Soap consumer, the request function is obtained as follows:
Qdx = 26.0071 - 3.6075 Px + 2.4490 Py - 1.5066 Y + 2.050 A
Information:
Px = Price of Bath soap Nona; Y = Household income
Py = Price of soap Sayang; A = Promotion costs
In relation to the above equation:
a)Interpret the quantitative analysis results above
b)What is the price elasticity, cross elasticity, income and promotion elasticity, if it is known that Qx is mean = 90, Px = 30, Py = 25, Y = 200 and A = 50
c)What policies can management do in increasing sales volume.
d)If the sales manager wants to increase sales by 15%, how much should the promotion cost be increased, ceteris varibus
e)Determine the demand curve.
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