Fukaku Footwear wished to estimate the demand function for its ‘Elite VS600’ women’s shoes. The company’s economist believed that the main determinants of ‘Elite VS600’ shoes are: i) ii) iii) iv) the price of the shoes (Px) the price of a competitor’s shoes Dr. Martin (Py) the price of another competitor’s shoes ‘Madame69’ (Pz) and disposable per capita income (Y)

A regression was run by using SPSS package and the result is shown as follows: LS//Dependent Variable is Qx Variable Coefficient C 250.7 Px -410.3 Py 240.3 Pz 180.3 Y 1.23 R-Squared = 0.857 S.E of regression = 265.6 Qx represents quantity (pairs) demanded per month. The current values of the dependent variables are Px = $80, Py = $75, Pz $82.5 and Y = $5250 a) Calculate the price and income elasticities of demand for ‘Elite VS600’ shoes. What do these values mean?

Suppose that the marginal cost of Elite VS600 is constant at $50, what is the profit maximizing price and output?

» MC = MR Given MC = 50 Find MR = TR =PxQ = (96.528 – 0.00244Qx) x Qx = 96.528Qx – 0.00244Qx2 = 96.528 – 0.00488Qx » MC = MR = 50 96.528 – 0.00488Qx = 50 Qx = 9534.43 → (i) Put (i) into Px demand curve, Px = 96.528 – 0.00244 (9534.43) = 73.26 d) At the profit maximizing price, what range of sales volume can be expected at 95% confidence limits?

MR =

At max TR; Px = 73.26 Qx = 9534.43 Given SEE = 265.6 t interval value (Rule of Thumb) = 2 SEE = Q + t-value (SEE) = (+) 9534.43 + 2 (265.6) = 10065.63 = (-) 9534.43 - 2 (265.6) =...

...Krispy Kreme Microeconomic Analysis: Dozen Glazed Donuts
Elizabeth Reel
GM 545
Ben Gruszczyk
Introduction
Krispy Kreme's glazed donuts are a tasty treat especially hot out of the oven. Thousands of people enjoy this delectable delight every day. Knowing this I will attempt to analyze the microeconomics of a dozen glazed donuts at a weekly basis. I will be covering terminal course objectives A through D. The TCOs are as follows:
TCO A- Illustrate how the price...

...is a schedule or curve showing the various amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specific period (MCConnell, Brue, & Flynn, 2009, p. 51).
Beggs (2014), “Economic supply- how much of an item a firm or market of firms is willing to produce and sell- is determined by what production quantity maximizes a firm's profits. The profit-maximizing quantity, in turn, depends on a number of...

...To show the effect of a hot summer on ice cream demand.
3. To show the effect of the use of a cheaper ice cream manufacturing method on the ice cream supply.
4. To discuss the resulting changes in equilibrium price and the quantity trade.
In Economics, supply and demand are one of the fundamental concepts. Market price for any commodity is determined by the outcome of demand and supply. The literature explains that where the supply and demand are closely related to each...

...Managerial Economics
Assignment 2 October 2nd 2013
1. Suppose we are examining the market for Photovoltaic Residential Solar Panels (PVRSP’s). Consumers (buyers) of these PVRSP’s use them to generate electricity for their homes. Sellers of PVRSP’s are profit-oriented businesses (firms). Please use the model of supply and demand to analyze various market scenarios for PVRSP’s. Make the standard assumptions about the...

...AP Economics Chapter 3 practice questions
Student: ___________________________________________________________________________
1. In order to understand how the price of a good is determined in the free market, one must account for the desires of:
A. purchasers exclusively.
B. sellers exclusively.
C. governmental agencies exclusively
D. lobbyists exclusively.
E. purchasers and sellers.
2. Which of the following is NOT true of a demand curve?
A. It has...

...Lydia Robinson
MT-445-02: Managerial Economics
Unit 2
8.13.2013
1. Explain what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred (be sure to indicate WHY it happens as well):
a. The price of Coke decreases.
If the price of Coke decreases and the price of Pepsi remains the same, Pepsi is now higher in price which will increase the quantity demand for Coke and the demand for Pepsi...

...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.
Option 1
Note: The following is a regression equation. Standard errors are in parentheses for the demand for widgets.
QD = - 5200 -...

...Running head: BARKS COMPUTER SCREENS CASE
Barks Computer Screens Case: A Market Analysis
Barks Computer Screens Case: A Market Analysis
A market analysis is a key component of a business plan and should be conducted every few years due to market and product changes. One important aspect is identifying the supply and demand of a product in the target market. The supply curve is a positive sloping curve because as the price increases so does the...