Given the demand equation Q=1.500-200P, calculate all the numbers necessary to fill in the following table.

Elasticity

P Q Point Arc Total Revenue Marginal revenue

$7.00

6.50

6.00

5.50

5.00

4.50

4.00

3.50

3.00

2.50

2.00

Sales forecasting: The sales data for the Lonestar sports apparel company for the last 12 months are as follows: 2001 ($400.000), 2002 ($440.000), 2003 (480.000), 2004 (518.000), 2005 (554.000), 2006 (587.000), 2007 (617.000), 2008 (654.000), 2009 (700.000), 2010 (756.000), 2011 (824.000) 2012 (906.000).

a) what is the 2001-2012 compound growth rate?

b) Using the result obtained in part a, what is your 2013 projection?

c) If you were to make your own projection, what would you forecast?

Demand Estimation: one of the most difficult tasks in regression analysis is to obtain the data suitable for quantitative studies. Suppose you are trying to estimate the demand home furniture, suggest the kinds of variables that could be used to represent the following factors, which are believed to affect the demand for any product. Be specific about how the variables are going to to be measured. Do you anticipate any difficulty in securing such data? Explain.

Determinants of demand for furniture vs Suggested variables to use in regression

Price

Tastes and preferences

Income

Costs or availability of credit

Number of buyers

Future expectations

Other possible factors