Refer toEastman Kodak Co.: Fun time Film Caseto answer the following sub questions,

a.Quantitatively evaluate the following two pricing alternatives (strategies) for Kodak and calculate the percentage increase in demand required for a price cut of 10% to result in the same profit as status quo, i.e. find out by how much should the demand increase as a percentage for a 10% price cut so that alternative 2 results in same profit as alternative 1

(10 points).

Alternative 1: Status quo (current price).

Alternative 2: Price cut of 10%.

b.Provide at least three distinct disadvantages of price drop for Kodak.