Autorickshaws and taxis in Bangalore have a metered fare system. Tipping is neither expected nor required when you avail of autorickshaw or taxi services. Just pay the meter fare. Refrain from tipping and ruining things for the residents who will then be at the receiving end of unwarranted demands for tips.
Assume the following values for the independent variables: Introduction In this paper I will compute the elasticity for each independent that was given to me. I will determine the implications for each of the computed elasticity. Elasticity, as it is used in economics, refers to the response of a "dependent" variable to changes in the "independent" variable n.
|An Expanded Selection of Equipment & Supplies||Calculate the price elasticity of demand. Use the point elasticity method described on page|
|DuPont becomes a modern, diversified chemical company and undergoes a major reorganization.||Your professor will provide you with the equation and data necessary for you to complete this assignment.|
I will recommend whether the firm should or should not cut its price to increase market share. I will then plot the demand curve and the supply curve. I will determine the equilibrium price and quantity. I will also outline the significant factors that could cause a change in the supply and demand.
I will then indicate the crucial factors that cause the rightward shifts and leftward shifts in demand. The maker of a leading brand of low-calorie microwavable food estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April.
First you will notice that the own price elasticity is rounded to This means that the consumers are responsive to price changes.
Therefore, if the firm wants to increase its revenue, it should lower its price.
Indicating that an increase in the food price will lead to the quantity falling causing the demand to be less than the required amount. The product is income elastic.
The income elasticity coefficient is bigger than 1. This implies that the product the firm produces is a superior good and is responsive to income fluctuations.
This firm should be very concerned if the economy slows down because disposable income decreases. Advertising elasticity is smaller than 1. Thus, advertising does not have a significant effect on sales. The elasticity coefficient of.
This implies that oven sales increased and the demand for the microwavable foods also increased. Factors for Change The demand for a low calorie food can change for a number of reasons: The supply can be determined or changed by the number of suppliers for the product, and also technology changes and labor and raw materials which will affect the cost of production.
Crucial Factors A rightward shift of demand curve could be the cause of an increase in consumer income. If there were a decrease in the price of substitute products such as the microwave oven there will also be an increase in preference for low calorie foods.
A rightward shift of supply curve can be caused by things such as technology advances. An example would be how the food is processed. A leftward shift can be caused by a decrease in availability and increase in price of labor. Recommendation I found that if the price falls the total revenue will too since the price elasticity that was calculated is less than 1.
The Impact of Food Prices on Consumption: Retrieved July 19, from http:Demand Estimation. Imagine that you work for the maker of a leading brand of low-calorie microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April.
We include both the low- and high-fat options in our measure, however, in sensitivity analyses, we used only the high-fat versions to construct our school-administrator based measure of junk food availability and found results to be similar.
Online Casino: Visit Our Website And Get a List Of The Best Sites. Visit Our Website And Get a List Of The Best Online Sites For USA Players. Casinos Store Slot Machines. 5. Suggest one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits.
Provide a rationale for your suggestion. (Hints: • In Assignment 1, you determined your firm’s market demand equation. Now you need to find the inverse demand equation. Assume that all the factors affecting demand in this model remain the same, but that the price has changed.
Further assume that the price changes are , , , , , cents. Plot the demand curve for the firm. Imagine that you work for the maker of a leading brand of low-calorie microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April.
Use the following demand equation concerning the questions of this assignment.