Question
M.K Corp.estimates to at its demand function is follows.Q= 400-12.5p+25A+14y+10p*, where Qis the quantity demand per mounth. P,is the products price(in$).A is the firm Advertiyizing
M.K Corp.estimates to at its demand function is follows.Q= 400-12.5p+25A+14y+10p*, where Qis the quantity demand per mounth. P,is the products price(in$).A is the firm Advertiyizing spenditure.(in$000) and P* is the price AJ corporation. a. during the next five years, per capital disposable in come is expacted to increasing by $5000 and AJ is expected to increase it price by $12.
what effect win this have on the firms sells volume?
b, is MK wants to change its price by enough to of set the above effects by how much must it do so?
c, compare the profitability of mountaning sells volue by either changing pice of changing Advertising spending.
d, if MK.s current prices$60 and it spends$10000 per mounth on Advertising whill per capital in come is $25000 and AJ.s price is $70.calculate the price electiricity of demand with the price change
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