Q1. A manufacturer of computer workstations gathered average monthly sales figures from its 56 branch offices and dealerships and estimated the following demand for its product: Q= 15000 - 2.8P + 150A + 0.3 Ppc + 0.35 Pm + 0.2Pc (5.234) (1.29) (175) (0.12) (0.17) (0.13) R^2 = 0.68 Numbers in brackets are standard error of coefficient (SEC) t statistics = b^/SEC Q= Quantity P = Price of basic model=7000 A= Advertising expenditures (in thousands) = 52 Ppc = Average price of a personal computer = 4000 Pm= Average price of a minicomputer 15000 Pc= Average price of a leading competitor's workstation = 8000 a. Compute the elasticities for each variable. b. Conduct a t-test for the statistical significance of each variable.

Initial values are: PM $20000 PG = $1.00 I = $15000 A = $10000 QT 200 -.01PT +.005PM -10PG +.011 +.003A This function is: 1.(a). Use the above to calculate the arc price elasticity of demand between Pr = $20000 decreasing to PT = $10000. AQ P₁ + P₂ The arc elasticity formula is:Ep ΔΡ Q₁ +2₂ (b). Judging from the computation in (1a), do you expect the revenue resulting from the price decrease to $10000 to increase, remain the same, or decrease relative to the revenue at the price of $20000? (Hint: see the table on page 65 of Truett). Explain your choice. 2.(a) Calculate the point price elasticity of demand for Toyotas at PT= $20000 (which should make Q₁ = 270). Other variables and their values are given at the top, before question #1. The formula is: dQT PT Ep = ● арт LT (b). Does this elasticity indicate that Toyota demand is relatively responsive to changes in Toyota price? Explain why or why not. 3.(a). Calculate the point gasoline cross-price elasticity between (PG) and Toyota…

Estimated Demand Function:ln(Q) = -6.758 – 2.116ln(P) + 1.331ln(l) – 0.44ln(A) + 2.99ln(Psub) + 0.908ln(Pop) Suppose we are charging a price of $2 and our current marginal cost is $1.50. Are we maximizing profits at this price? If not, should we raise or lower price? Why?

The 24-Hour Mart operates a chain of supermarkets. Its best-selling soft drink is Fruitslice. Demand (D) in April for Fruitslice at its Regina supermarket is estimated to be 7,200 cases (24 cans in each case). In March, the Regina supermarket estimated the ordering costs per purchase order (P) for Fruitslice to be $36. The carrying costs (C) of each case of Fruitslice in inventory for a month were estimated to be $1.20. At the end of March, the Regina 24-Hour Mart reestimated its carrying costs to be 1.80 per case per month to take into account an increase in warehouse-related costs. (Click the icon to view additional information.) Requirements 1. Calculate the economic order quantity in April for Fruitslice. Use the EOQ model, and assume in turn that a. D=7,200; P= $36; C = $1.20 b. D=7,200; P= $36; C = 1.80 c. D=7,200; P= $6; C = 1.80 2. How does your answer to requirement 1 give insight into the retailer's movement toward JIT purchasing policies? Data table × (Round your answer up…

A lash adjuster keeps pressure constant on engine valves, thereby increasing fuel efficiency in automobile engines. The relationship between price (p) and monthly demand (D) for lash adjusters made by the Wicks Company is given by this equation D (1.900-py0 10 What is the demand (0) when total revenue is maximized? What important data are needed if maximum profit is desired? G The total revenue is maximized when demand is 9500 units per month (Round to the nearest whole number) Select all important data that are needed if maximum profit is desired. DA Variable cost per lash adjuster B. Fixed cost per month C. Variable cost per engine valve D. Variable cost per gallon of fuel

Q1: KSU Products has just carried out a survey of the demand for their guidebooks to spoken Arabic. They have found the following results over the last six months. Sales revenue 356 398 372 360 365 350 Price ($) 4.5 4.0 4.2 4.5 4.3 4.8 a. Estimate an appropriate demand relationship; Q=apb b. Make a forecast of sales revenue for a price of $5, stating any assumptions. c. Éstimate the price elasticity of demand for the data as a whole. d. If price is raised 10 per cent in general terms, what will happen to revenue?

A company manufactures two types of typewriters-electrical (E) and manual (M). The revenue function of the company, in thousands is: R(E, M) = 8E + 5M + 2EM – E² – 2M² + 20. Determine the quantity of electrical and manual typewriters which lead to maximum revenue. Also calculate the maximum revenue.

A manufacturer of dishwashers is preparing to set the price on a new design. Demand is thought to depend on the price and is represented by   D = 2100 – 4.3P   The accounting department estimates that the total costs can be represented by   C = 4840 + 6.2D   (a) Develop a model for the total profit in terms of the price, P. (b) What will be the total profit if the price is $380.