Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PT Industri Jamu dan Farmasi Sido Muncul tbk (SIDO)'s CEO, Irwan Hidayat, said that he intends to enter the pharmaceuticals market in Malaysia. He believed

PT Industri Jamu dan Farmasi Sido Muncul tbk (SIDO)'s CEO, Irwan Hidayat, said that he intends to enter the pharmaceuticals market in Malaysia. He believed that one of SIDO's best product which is Tolak Angin, will be well received by Malaysian consumers. However, before making a penetration to Malaysia market, Mr Hidayat have asked the market research team to investigate the supply and demand condition. According to SIDO's market research team, the equations bellow are the demand and supply function of Tolak Angin in Malaysia market = 82 8 and = 2 + 20 a. If you are part of the team, what price would you expect for Malaysian consumer to pay for Tolak Angin. (the price is in MYR, Malaysian Ringgit) b. How much the quantity of Tolak angin that they should produce (in thousands) c. If Malaysian Government decided to imposes excise tax MYR 0.25) to Tolak Angin (supply functions shift to the left) , calculate the new equilibrium price and quantity d. Calculate SIDO's Total Revenue, based on new equilibrium (with tax) Question 2 (20 Points) Mayora Group which is engaged in the consumer goods sector has now successf

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of economics

Authors: N. Gregory Mankiw

6th Edition

978-0538453059, 9781435462120, 538453052, 1435462122, 978-0538453042

More Books

Students also viewed these Economics questions

Question

The net income to sales revenue ratio is also known as the

Answered: 1 week ago