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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Due Week 3 and worth 200 points
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.
For a refresher on independent and dependent variables, please go to Sophia’s Website and review the Independent and Dependent Variables tutorial, located at http://www.sophia.org/tutorials/independent-and-dependent-variables--3.
Note:Â Your professor will provide you with the equation and data necessary for you to complete this assignment. You will find this information attached to Assignment 1 within the course shell.
Write a four to six (4-6) page paper in which you:
Your assignment must follow these formatting requirements:
The specific course learning outcomes associated with this assignment are:
Click here to view the grading rubric.
Please use the following equation as your demand function.
QDÂ Â Â Â Â Â =Â Â Â Â Â Â Â Â Â 20,000 - 10P + 1500A + 5PXÂ + 10I
(5,234)Â (2.29)Â Â (525)Â Â (1.75)Â (1.5)
R2 = 0.85 Â Â Â Â Â Â Â Â Â n = 120Â Â Â Â Â Â Â Â Â Â Â Â F = 35.25
To compute the elasticities for each independent variable, please use the following values for the independent variables as your starting point:
QÂ Â Â Â Â Â Â Â Â =Â Â Â Â Â Â Â Â Â Quantity demanded
P (in cents)Â Â Â Â Â Â =Â Â Â Â Â Â Â Â Â Price of the product = 8,000
PX (in cents)    =         Price of leading competitor’s product = 9,000
I (in dollars)Â Â Â Â Â Â =Â Â Â Â Â Â Â Â Â Per capita income of the standard metropolitan statistical area
(SMSA) in which the supermarkets are located = 5,000
A (in dollars)Â Â Â Â =Â Â Â Â Â Â Â Â Â Monthly advertising expenditures = 64
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