Question
You are presented with the following sales data from 2013-2021 of The Suskin Auto Corporation on sales of its used automobiles from both of its
You are presented with the following sales data from 2013-2021 of The Suskin Auto Corporation on sales of its used automobiles from both of its auto sales centers; one in Troy, NY and the other in Cortland, NY. The product's price, at both centers, measured in 100's of US Dollars, is: 62, 52, 42, 32, 22, 12, and 2. The corresponding quantity demanded at the Troy, NY center measured in 1,000's of automobiles, is: 2, 4, 6, 8, 10, 12, and 14. While the quantity demanded at the Cortland, NY center, also measured in 1,000's, is: 3, 6, 9, 12, 15, 18 and 21. All the data was retrieved from the New York State Auto Review, volume 18, issue 6, pages 98-104, "Used Car Sales in Central New York" by Frank Ellefson and will be used in your presentation at the National Used Car Dealers 2023 Annual Meeting. This is copyrighted material. a. In two separate graphs, that you have created using Excel, clearly and accurately graph the demand curves for the Troy center and the Cortland center. These will be graph # 2 and graph # 4, respectively, in your presentation. (34 pts; 17 pts each) This is copyrighted material b. Solely considering your graphs and data in part A above. For each curve, follow the demand curve from $52 to 42, 42 to 32, and, 32 to 22, and calculate the elasticity of demand (Ed) for each curve at those price intervals. Show all work. Then address, by referencing your calculations only, very specifically, what each answer you have calculated means in terms of the Ed. (16 pts). This is copyrighted material c. Consider your knowledge of the determinants of the elasticity of demand and consider the two demand curves you have in part A. A visual inspection clearly indicates the curves are of differing slopes. Take three concrete causes and address why these demand curves have differing slopes. Be certain to explain why. Simply restating what is stated in the question already is not answering the question. (10 pts)
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