Question
The XYZ company is a producer of dishwashers. The company's marketing department has estimated the following demand curve for the company's best-selling model in one
The XYZ company is a producer of dishwashers. The company's marketing department has estimated the following demand curve for the company's best-selling model in one of its regions. Q = 2000 - 4P + 6A + 5PC- 4AC+ 5I where Q = Number of dishwashers demanded P = $600; Price of dishwashers A = $150; Advertising expenditures (thousands) I = $50; GDP per capita (thousands) PC = $500; Competitor's price AC = $200; Competitor's advertising expenditures (thousands)
What would be the effect on the sales of dishwashers if the competitor reduces price by $50? (Note: if there is a decrease, you must have a minus (-) sign in front of your numerical answer with no space, e.g. a drop of 50 would be -50.) Answer:
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