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- 6. Using Marginal Utility analysis, carefully explain why the Demand Curve for a given product is sloping downward.what makes a product premium???? 1. What makes Mutti premium? 2. Present the business environment and the competition 3. Advantages and disadvantages of each course of actionAnswer the question using the 3 -step approach 2. Due to Covid 19, there has been a major delay with the shipping lines causing an increase in shipping costs for major retailerShipping cost is a major cost component for shea products. How will Covid affect the supply and demand for Shea products? 3. A 12 % increase in the price of fuel reduces the quantity of fuel demanded by 3 %. What is the price elasticity of demand for fuel?What can you say about elasticity?
- 5.(a). Calculate the point advertising elasticity of demand for advertising expenditures (A) = $10000 also with PT = $10000 (which should make QT= 370). Other variables and their values are given at the top, before question #1. The formula is: (b). Does this elasticity indicate that demand for Toyotas is very responsive to changes in advertising expenditures (thus suggesting that advertising is a very important way to increase sales)? Explain why or why not.*3 ASAP Please! Gertrude loves both Wolverine Root Beer and Spartan Root Beer equally. What if she goes shopping and finds that the price of Wolverine Root Beer has increased by $2.00 relative to Spartan Root Beer. What effect will this have on her demand for Spartan Root Beer? Why? Use words and graphs to show what will happen in both the Wolverine and Spartan root beer markets (use separate graphs for each product).9. Consider the market for SUVs. a. Start in Equilibrium (be sure to label all relevant points) b. Change at least one of the ceteris paribus conditions. Now consider the market for SUVs if a hurricane hits in the gulf region, damaging some of the oil platforms and oil refineries in the region. c. Examine the changed incentive. Which curve(s) has(have) changed? Why? (i.e. – which of the ceteris paribus conditions have changed?) _______________________________________________________ d. Identify the change(s) in direction, and draw into the above market. e. Finish in equilibrium. What are the effects on price and quantity?
- 5. Discuss in detail, demand function and its factors.The table below shows two demand schedules for a given style of men’s shoes—that is, how many pairs per month will be demanded at various prices at a men’s clothing store in Winnipeg called Stromnord. Price D1QuantityDemanded D2QuantityDemanded $85 53 13 80 60 15 75 68 18 70 77 22 65 87 27 Suppose that Stromnord has exactly 55 pairs of this style of shoe in inventory at the start of the month of July and will not receive any more pairs of this style until at least August 1. a. If demand is D1, what is the lowest price that Stromnord can charge so that it will not run out of this model of shoe in the month of July? What if demand is D2? If demand is D1, the lowest price Stromnord can charge is $ .If demand is D2, the lowest price Stromnord can charge is $ . b. If the price of shoes is set at $85 for both July and August and demand will be D2 in July and D1 in August, how many pairs of shoes should Stromnord order for August if it wants to end the month of August…11. Describe what will be the impact of a decrease in the price of airline fareson the demand for hotel accommodation? 12. As consumer Incomes rise, to which direction the demand curve shifts forrestaurant dinners?
- 1) Suppose a company tries to increase profits by raising its price. For this strategy to succeed the____________curve must be___________ a. Supply, elastic. b. Demand; inelastic. c. Demand, elastic. d. Supply; inelastic. 2) If the price of butter increases, and as a consequence the demand for margarine increases, butter is, in relation to margarine, a. An independent b. product. c. A substitute product d. A complementary product. e. A ceteris paribus product.4) Provide a simple definition of the price elasticity of demand and explain why knowing the price elasticity for her product is useful to the firm's manager.1,) Explain the price-demand relationship. What factors must sellers consider when setting prices in different type of markets? 2)list two new products pricing strategies . give an example for each one to show each strategy look like.