Assignment 1 Demand Estimator Essay

Imagine that you work for the maker of a leading brand of low-calorie, frozen microwavable food that estimates the following involve equivalence for its harvest using data from 26 supermarkets around the country for the month of April. For a refresher on supreme and dependent variables, please go to Sophias Website and review the Independent and Dependent Variables tutorial, located at http//www.sophia.org/tutorials/independent-and-dependent-variables3.Option 1Note The following is a regression equation. Standard errors are in parentheses for the take aim 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 separately independent variable. Assume the following values for the independent variables Q = Quantity needed of 3-pack units P (in cents) = Price of the product = 500 cents per 3-pack unit PX (in cents) = Price of leading competitors product = 600 cents per 3-pack unit I (in dollars) = Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarkets are located = $5,500A (in dollars) = Monthly advertising expenditures = $10,000 M = Number of microwave ovens sold 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 = 120 F = 35.25 Your supervisor has askedyou 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 statistical area (SMSA) in which the supermarkets are located = $5,000A (in dollars) = Monthly advertising expenditures = $640 carry through a four to six (4-6) foliate paper 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 short-term and long-term pricing strategies. Provide a rationale in which you cite your results.3. Recommend whether you believe that this firm should or should not cut its price to increase its market share. Provide support for your recommendation.4. Assume that all the factors affecting demand in this model remain the same, moreover that the price has changed.Further assume that the price changes are 100, 200, 300, 400, 500, 600 dollars.1. Plot the demand curve for the firm.2. Plot the corresponding supply curve on the same graphical record using the following MC / supply function Q = -7909.89 + 79.0989P with the same prices.3. Determine the equilibrium price and quantity.4. Outline the significant factors that could cause changes in supply and demand for the product. Determine the primary manner in which both the short-term and the long-term changes in market conditions could partake 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 academic resources in this assignment. Note Wikipedia does not qualify as an academic resource. Your assignment essential follow these formatting requirements7. Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides citations and references must follow APA orschool-specific format. snap with your professor for any additional instructions.8. Include a cover page containing the title of the assignment, the students name, the professors name, the course 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. go bad how production and cost functions in the short run and long run affect the strategy of individual firms.10. Apply the concepts of supply and demand to determine the impact of changes in market conditions in the short run and long run, and the economic impact on a companys operations.11. Use technology and knowledge resources to research issues in managerial economics and globalization.12. Write clearly and concisely about managerial economics and globalization using proper writing mechanics. gibber here to view the grading rubric.