Expert answer:Assignment 1: Demand Estimation
Solved by verified expert:Imagine
that you work for the maker of a leading brand of low-calorie, frozen
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.Option 1 Note: The following is a regression equation. Standard errors are in parentheses for the demand for widgets. QD = – 5200 – 42P + 20PX + 5.2I + 0.20A + 0.25M (2.002) (17.5) (6.2) (2.5) (0.09) (0.21) R2 = 0.55 n = 26 F = 4.88Your
supervisor has asked you 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 = 500 cents per 3-pack unit PX (in cents) = Price of leading competitor’s 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 = $5,500 A (in dollars) = Monthly advertising expenditures = $10,000 M = Number of microwave ovens sold in the SMSA in which the supermarkets are located = 5,000Write a four to six (4-6) page paper in which you:Compute the elasticities for each independent variable. Note: Write down all of your calculations.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.Recommend
whether you believe that this firm should or should not cut its price
to increase its market share. Provide support for your recommendation.Assume
that all the factors affecting demand in this model remain the same,
but that the price has changed. Further assume that the price changes
are 100, 200, 300, 400, 500, 600 cents.Plot the demand curve for the firm.Plot
the corresponding supply curve on the same graph using the following MC
/ supply function Q = -7909.89 + 79.1P with the same prices.Determine the equilibrium price and quantity.Outline
the significant factors that could cause changes in supply and demand
for the low-calorie, frozen microwavable food. Determine the primary
manner in which both the short-term and the long-term changes in market
conditions could impact the demand for, and the supply, of the product.Indicate the crucial factors that could cause rightward shifts and leftward shifts of the demand and supply curves for the low-calorie, frozen microwavable food.Use at least three (3) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.Your assignment must follow these formatting requirements:Be
typed, double spaced, using Times New Roman font (size 12), with
one-inch margins on all sides; citations and references must follow APA
or school-specific format. Check with your professor for any additional
instructions.Include
a cover page containing the title of the assignment, the student’s
name, the professor’s 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 are:Analyze how production and cost functions in the short run and long run affect the strategy of individual firms.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 company’s operations.Use technology and information resources to research issues in managerial economics and globalization.Write clearly and concisely about managerial economics and globalization using proper writing mechanics.
week_3_assignment_1_grading_rubric.pdf
Unformatted Attachment Preview
https://blackboard.strayer.edu/bbcswebdav/institution/ECO/550/1156/W…
Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following
rubric.
Points: 200
Assignment 1: Demand Estimation
Unacceptable
Fair
Proficient
Exemplary
Below 70% F
70-79% C
80-89% B
90-100% A
Criteria
1. Compute the elasticities for
each independent variable.
Note: Write down all of your
calculations.
Did not submit or
incompletely computed
the elasticities for each
independent variable.
Partially computed the
elasticities for each
independent variable.
Satisfactorily computed
the elasticities for each
independent variable.
Thoroughly computed the
elasticities for each
independent variable.
2. Determine the implications
for each of the computed
elasticities for the business in
terms of short-term and longterm pricing strategies. Provide
a rationale in which you cite
your results.
Weight: 15%
Did not submit or
incompletely determined
the implications for each
of the computed
elasticities for the
business in terms of
short-term and long-term
pricing strategies. Did not
submit or incompletely
provided a rationale in
which you cite your
results.
Partially determined the
implications for each of
the computed elasticities
for the business in terms
of short-term and longterm pricing strategies.
Partially provided a
rationale in which you cite
your results.
Satisfactorily determined
the implications for each
of the computed
elasticities for the
business in terms of
short-term and long-term
pricing strategies.
Satisfactorily provided a
rationale in which you cite
your results.
Thoroughly determined
the implications for each
of the computed
elasticities for the
business in terms of
short-term and long-term
pricing strategies.
Thoroughly provided 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.
Did not submit or
incompletely
recommended whether
you believe that this firm
should or should not cut
its price to increase its
market share. Did not
submit or incompletely
provided support for your
recommendation.
Partially recommended
whether you believe that
this firm should or should
not cut its price to
increase its market share.
Partially provided support
for your recommendation.
Satisfactorily
recommended whether
you believe that this firm
should or should not cut
its price to increase its
market share.
Satisfactorily provided
support for your
recommendation.
Thoroughly
recommended whether
you believe that this firm
should or should not cut
its price to increase its
market share. Thoroughly
provided support for your
recommendation.
Did not submit or
incompletely plotted the
demand curve for the
firm.
Partially plotted the
demand curve for the
firm.
Satisfactorily plotted the
demand curve for the
firm.
Thoroughly plotted the
demand curve for the
firm.
Did not submit or
incompletely plotted the
corresponding supply
curve on the same graph
using the following MC /
supply function Q =
-7909.89 + 79.1P with the
same prices.
Partially plotted the
corresponding supply
curve on the same graph
using the following MC /
supply function Q =
-7909.89 + 79.1P with the
same prices.
Satisfactorily plotted the
corresponding supply
curve on the same graph
using the following MC /
supply function Q =
-7909.89 + 79.1P with the
same prices.
Thoroughly plotted the
corresponding supply
curve on the same graph
using the following MC /
supply function Q =
-7909.89 + 79.1P with the
same prices.
Did not submit or
incompletely determined
the equilibrium price and
Partially determined the
equilibrium price and
quantity.
Satisfactorily determined
the equilibrium price and
quantity.
Thoroughly determined
the equilibrium price and
quantity.
Weight: 15%
Weight: 10%
4a. Assume that all the factors
affecting demand in this model
remain the same, but that the
price has changed. Further
assume that the price changes
are 100, 200, 300, 400, 500,
600 cents. Plot the demand
curve for the firm.
Weight: 5%
4b. Assume that all the factors
affecting demand in this model
remain the same, but that the
price has changed. Further
assume that the price changes
are 100, 200, 300, 400, 500,
600 cents. Plot the
corresponding supply curve on
the same graph using the
following MC / supply function
Q = -7909.89 + 79.1P with the
same prices.
Weight: 5%
4c. Assume that all the factors
affecting demand in this model
remain the same, but that the
1 of 3
10/16/2017, 5:08 PM
https://blackboard.strayer.edu/bbcswebdav/institution/ECO/550/1156/W…
price has changed. Further
assume that the price changes
are 100, 200, 300, 400, 500,
600 cents. Determine the
equilibrium price and quantity.
quantity.
Weight: 5%
Did not submit or
incompletely outlined the
significant factors that
could cause changes in
supply and demand for
the low-calorie, frozen
microwavable food. Did
not submit or
incompletely determined
the primary manner in
which both the short-term
and the long-term
changes in market
conditions could impact
the demand for, and the
supply, of the product.
Partially outlined the
significant factors that
could cause changes in
supply and demand for
the low-calorie, frozen
microwavable food.
Partially determined the
primary manner in which
both the short-term and
the long-term changes in
market conditions could
impact the demand for,
and the supply, of the
product.
Satisfactorily outlined the
significant factors that
could cause changes in
supply and demand for
the low-calorie, frozen
microwavable food.
Satisfactorily determined
the primary manner in
which both the short-term
and the long-term
changes in market
conditions could impact
the demand for, and the
supply, of the product.
Thoroughly outlined the
significant factors that
could cause changes in
supply and demand for
the low-calorie, frozen
microwavable food.
Thoroughly determined
the primary manner in
which both the short-term
and the long-term
changes in market
conditions could impact
the demand for, and the
supply, of the product.
Did not submit or
incompletely indicated
the crucial factors that
could cause rightward
shifts and leftward shifts
of the demand and
supply curves for the lowcalorie, frozen
microwavable food.
Partially indicated the
crucial factors that could
cause rightward shifts
and leftward shifts of the
demand and supply
curves for the low-calorie,
frozen microwavable
food.
Satisfactorily indicated
the crucial factors that
could cause rightward
shifts and leftward shifts
of the demand and
supply curves for the lowcalorie, frozen
microwavable food.
Thoroughly indicated the
crucial factors that could
cause rightward shifts
and leftward shifts of the
demand and supply
curves for the low-calorie,
frozen microwavable
food.
6. 3 references
Weight: 5%
No references provided
Does not meet the
required number of
references; some or all
references poor quality
choices.
Meets number of required
references; all references
high quality choices.
Exceeds number of
required references; all
references high quality
choices.
7. Writing Mechanics,
Grammar, and Formatting
Weight: 5%
Serious and persistent
errors in grammar,
spelling, punctuation, or
formatting.
Partially free of errors in
grammar, spelling,
punctuation, or
formatting.
Mostly free of errors in
grammar, spelling,
punctuation, or
formatting.
Error free or almost error
free grammar, spelling,
punctuation, or
formatting.
8. Appropriate use of APA intext citations and reference
section
Weight: 5%
Lack of in-text citations
and / or lack of reference
section.
In-text citations and
references are provided,
but they are only partially
formatted correctly in
APA style.
Most in-text citations and
references are provided,
and they are generally
formatted correctly in
APA style.
In-text citations and
references are error free
or almost error free and
consistently formatted
correctly in APA style.
9. Information Literacy /
Integration of Sources
Weight: 5%
Serious errors in the
integration of sources,
such as intentional or
accidental plagiarism, or
failure to use in-text
citations.
Sources are partially
integrated using effective
techniques of quoting,
paraphrasing, and
summarizing.
Sources are mostly
integrated using effective
techniques of quoting,
paraphrasing, and
summarizing.
Sources are consistently
integrated using effective
techniques of quoting,
paraphrasing, and
summarizing.
10. Clarity and Coherence of
Writing
Weight: 5%
Information is confusing
to the reader and fails to
include reasons and
evidence that logically
support ideas.
Information is partially
clear with minimal
reasons and evidence
that logically support
ideas.
Information is mostly
clear and generally
supported with reasons
and evidence that
logically support ideas.
Information is provided in
a clear, coherent, and
consistent manner with
reasons and evidence
that logically support
ideas.
4d. Assume that all the factors
affecting demand in this model
remain the same, but that the
price has changed. Further
assume that the price changes
are 100, 200, 300, 400, 500,
600 cents. Outline the
significant factors that could
cause changes in supply and
demand for the low-calorie,
frozen microwavable food.
Determine the primary manner
in which both the short-term
and the long-term changes in
market conditions could impact
the demand for, and the supply,
of the product.
Weight: 10%
5. Indicate the crucial factors
that could cause rightward
shifts and leftward shifts of the
demand and supply curves for
the low-calorie, frozen
microwavable food.
Weight: 10%
2 of 3
10/16/2017, 5:08 PM
https://blackboard.strayer.edu/bbcswebdav/institution/ECO/550/1156/W…
3 of 3
10/16/2017, 5:08 PM
…
Purchase answer to see full
attachment
How it works
- Paste your instructions in the instructions box. You can also attach an instructions file
- Select the writer category, deadline, education level and review the instructions
- Make a payment for the order to be assignment to a writer
- Download the paper after the writer uploads it
Will the writer plagiarize my essay?
You will get a plagiarism-free paper and you can get an originality report upon request.
Is this service safe?
All the personal information is confidential and we have 100% safe payment methods. We also guarantee good grades