Assignment 1 Demand Estimator Essay

Imagine that you work for the maker of a leading brand of low-calorie, frozen microwavable aliment that estimates the following claim equation for its produce victimization data from 26 supermarkets round the country for the month of April. For a refresher on self-reliant and dependent variables, entertain go to Sophias Website and re conceive the individual and Dependent Variables tutorial, turn up at http//www.sophia.org/tutorials/mugwump-and-dependent-variables3. picking 1Note The following is a regression equation. Standard errors atomic number 18 in p arntheses for the demand for widgets. QD = 5200 42P + 20PX + 5.2I + .20A + .25M (2.002) (17.5) (6.2) (2.5) (0.09) (0.21)R2 = 0.55 n = 26 F = 4.88 Your supervisor has asked you to compute the elasticities for sever onlyy breakaway variable. Assume the following value for the independent variables Q = Quantity demanded of 3-pack units P (in cents) = outlay of the result = 500 cents per 3-pack unit PX (in cents) = exp enditure of leading competitors yield = 600 cents per 3-pack unit I (in dollars) = Per capita income of the standard metropolitan statistical knowledge base (SMSA) in which the supermarkets ar located = $5,500A (in dollars) = Monthly advertize expenditures = $10,000 M = Number of microwave ovens change in the SMSA in which the supermarkets are located = 5,000Option 2Note The following is a regression equation. Standard errors are in parentheses for the demand for widgets. QD = -2,000 100P + 15A + 25PX + 10I (5,234) (2.29) (525) (1.75) (1.5)R2 = 0.85 n = one hundred twenty F = 35.25 Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables Q = Quantity demanded of 3-pack units P (in cents) = Price of the product = 200 cents per 3-pack unit PX (in cents) = Price of leading competitors product = 300 cents per 3-pack unit I (in dollars) = Per capita income of the standard metropolitan sta tistical area (SMSA) in which the supermarkets are located = $5,000A (in dollars) = Monthly advertising expenditures = $640 print a four to six (4-6) paginate topic in which you1. Compute the elasticities for each independent variable. Note Write down all of your calculations.2. Determine the implications for each of the computed elasticities for the business in terms of condensed- secede and long-term determine strategies. Provide a rationale in which you cite your results.3. Recommend whether you believe that this blind drunk should or should not cut its charge to increase its market share. Provide computer backup for your recommendation.4. Assume that all the factors affecting demand in this model remain the same, just that the footing has changed.Further assume that the toll changes are 100, 200, 300, 400, 500, 600 dollars.1. Plot the demand sheer for the firm.2. Plot the corresponding supply curved shape on the same graph using the following MC / supply utilizati on Q = -7909.89 + 79.0989P with the same prices.3. Determine the equilibrium price and quantity.4. Outline the significant factors that could stimulate changes in supply and demand for the product. Determine the pristine manner in which both the short-term and the long-term changes in market conditions could blow the demand for, and the supply, of the product.5. Indicate the crucial factors that could cause rightward shifts and leftward shifts of the demand and supply curves.6. Use at least three (3) quality academician resources in this assignment. Note Wikipedia does not metamorphose as an academic resource. Your assignment moldiness follow these formatting requirements7. Be typed, stunt man spaced, using Times New roman print font (size 12), with one-inch margins on all sides citations and references moldiness follow APA or school- item format. Check with your professor for any additional instructions.8. Include a cover page containing the title of the assignment, the educatees name, the professors name, the running title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are9. Analyze how production and cost functions in the short run and long run affect the strategy of individual firms.10. go through the concepts of supply and demand to determine the encroachment of changes in market conditions in the short run and long run, and the economic repair on a companys operations.11. Use technology and information resources to explore issues in managerial economics and globalization.12. Write clearly and concisely about managerial economics and globalization using neat writing mechanics. Click here to view the grading rubric.