answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mash [69]
2 years ago
11

Suppose the daily demand for soda is given by P = 4 – (2/3)Q and the daily supply of soda is given by P = 1 + (1/3)Q, where P is

the dollar price of a can of soda and Q is the number of cans of soda (in thousands).a. Sketch the demand curve and the supply curve.Instructions: Use the tools provided to draw the demand and supply curves. Plot each end point (4 points total).b. How many cans of soda are bought and sold each day? What is the equilibrium price of soda?i. Equilibrium quantity: ____ cansii. Equilibrium price: $ ____ per canc. What is the price elasticity of demand for soda at the equilibrium price?d. What is the price elasticity of supply for soda at the equilibrium price?e. If the price of one of the inputs used to make soda increases, then what will happen to consumers' total expenditure on soda?i. It will decrease.ii. it will remain unchangediii. It will increase.
Business
1 answer:
Pavel [41]2 years ago
7 0

Answer:

Qe 2

Pe 2

Demand price elasticity -0.60

Supplu price elasticity 3

i. It will decrease

As the demand as a more than proportionate price elasticity will overreact to the input price and their subsequent price increase with a reduce in consumption.

Explanation:

We equalize both to get the equilibrium quantity (Qe)

4 - 2/3Qe = 1 + 1/3Qe

Qe(2/3 + 1/3)  = 4 - 1

Qe = 3

Then we solve for equilibrium price (Pe)

Pe =  4 - 2/3 x 3 = 4 - 2 = 2

Pe = 1 + 1/3 x 3 = 1 + 1 = 2

Price elasticity of demand at equilibrium:

variation in quantity / variation in price

we solve for Q when P = 3 and compare the variation

(1.33-3) / (3 - 2) = -1.66/1  = -1.66

Price elasticity of supply at equilibrium:  ( 6 - 3) / (3 - 2) = 3 / 1 = 3

You might be interested in
1. How has an understanding of consumer behavior helped Coppertone grow in the United States and around the globe? 2. Describe t
True [87]

Answer: The answers are provided below

Explanation:

1. The understanding of consumer behavior which has helped Coppertone grow in the United States and around the world are:

• Its understanding of consumer behavior was along with changing behaviour of consumers.

• Its understanding was along with consumer's changing needs.

• Providing innovative solutions that are in accordance with consumer preferences.

Note that at the beginning, Coppertone started as a tanning product, but later developed nee products when the consumers preferences changed from tanning to skin protection.

2. . The Five stage purchase decision process for a Coppertone customer are:

a. Problem recognition - This is the stage of understanding the problem.

b. Search for information. It is the stage of seeking solution to the problem

c. Comparision of alternatives - This is the stage where the comparative analysis is done. This stage is influenced by the product, price, availability etc.

d. Decision of purchasing - This is the stage of decision making that is based on the comparisons made.

e. Post-purchase feedback - This is the stage whereby the consumer will evaluate the product performance. This stage is vital to retaining existing consumers.

3. The factors that can influence the Coppertone consumer purchase decision process are:

• Psychological: It is the intention of consumers to protect their skin from the sun while going out thereby maintaining their good look.

• Sociological : It is in human behaviour to replicate the things that are being done by other people in the society.

• Situational Factor: This is a case whereby consumers are left with no other alternatives than purchasing a particular product brand to meet their need.

4. The marketing activities Coppertone utilized to help it grow in the marketplace are:

• Advertisment: Coppertone advertisment strategy really worked through its use of the advertisement campaign for “the Coppertone Girl” and also their famous tagline “Tan, Don’t Burn.” This helped spar the product’s popularity.

• Use of social media: They also engage with their customers on social media nd other websites.

5. The challenges that would be faced by Coppertone in the future are:

• There will be an unbalanced demand and supply since the requirement of the product is seasonal.

• Selective usage of the product by the customer can hampers the sale.

• There may be the need for more innovative products in order to meet customer needs.

The recommendation related to each challenges are:

• Awareness should be created among the customers about their self health and looks, in order for them to shift away from seasonal usage.

• New products should be launched aggressively. This is because customers are trendy nowadays and also appealing marketing techniques should be used.

6 0
2 years ago
Last week David spent $12,500 on advertising. This week he plans to spend twice as much. Next week he wants to spend half of wha
DIA [1.3K]
Last week: $12,500.This week: $12,500 * 2 = $25,000Next week: ( $12,500 + $25,000 ) : 2 = $37,500 : 2 = $18,750Answer: David plans to spend $18,750 on advertising next week.

6 0
2 years ago
Mr. Crane is the manager of a video production company. To maximize efficiency, he assigns associates to departments (e.g. film
frez [133]

Answer:

Mr. Crane must first draw the interests and abilities of the companions. Some of them might be logically very good and obsessive in some parts (film division, editing division, sound division, etc.) but they might be assign to some other division. This will enhance in their low level of satisfaction and motivation. This will also assist Mr. Crane in conveying the divisions as per comforts of the associate as possible.

Explanation:

Mr. Crane must achieve an unidentified Response Survey between staffs so that their disquiets and problems can be carried out. Some individuals might not give this response openly.

Mr. Crane must also look at some of the work structures which are very serious for employee’s job satisfaction:

  • Operational time (Are Associates working long hours?)
  • Pay and compensation (Are they paid less than market rates?)
  • Training and learning opportunities
  • Traditional and sport actions to keep staffs involved
  • Inspiration from leaders

Mr. Crane must find out the points through above methods and effort to discourse them so that staffs feel pleased and motivated. He can also initiate Rewards & Recognition program to escalate good workers. This will also improve their motivation.

8 0
2 years ago
A clothing manufacturer makes both shirts and shorts. The sales price for shirts is $24 with variable costs of $10 and shorts ha
Gnoma [55]

Answer:

1)They would prefer to make shorts as contribution margin per unit is higher for shorts

Explanation:

Step 1. Given information.

  • Sales price shirts is $24
  • Variable costs shirts is $10
  • Sales price shorts $32
  • Variable costs shorts $17

Step 2. Formulas needed to solve the exercise

Contribution margin = sales price - variable cost

Step 3. Calculation.

Contribution margin shirts  = 24 - 10 = 14

Contribution margin shorts = 32 - 17 = 15

Step 4. Solution.

<h2>Contribution margin shorts > Contribution margin shirts</h2>

6 0
2 years ago
The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase i
jok3333 [9.3K]

Answer:

A) straight rebuy

Explanation:

Based on the information provided within the question it can be said that this type of purchase is classified as a straight rebuy. Like mentioned in the question this is a type of purchasing or reordering of supplies , and is done from an approved list held by the company in order to try and maintain the product's quality (since they already know the approved company sells good quality) as well as save time on having to research other suppliers.

5 0
2 years ago
Other questions:
  • You publish a magazine for calculator collectors. to produce and distribute this magazine, you use a number of inputs: • compute
    7·2 answers
  • Generally, filmmakers want movie titles that are short, memorable, appealing to consumers, and without legal restrictions. These
    12·2 answers
  • An economist studying the market for wild Alaskan salmon determines the price elasticity of supply to be 0.43. a. In this case,
    6·2 answers
  • Developing a new automobile requires the services of many types of experts such as design and electronics engineers, procurers,
    15·1 answer
  • Select the correct answer.
    14·1 answer
  • Rosa purchased three call option contracts on ABC stock with a strike price of $27 when the option premium was quoted at $1.1. T
    14·1 answer
  • The typical consumer's food basket in the base year 2015 is as follows: 30 chickens at $4 each 10 hams at $5 each 10 steaks at $
    9·1 answer
  • Ehrling, Inc., manufactures metal racks for hanging clothing in retail stores. Ehrling was approached by the CEO of Carly’s Corn
    14·1 answer
  • Peter's Audio has a yield to maturity on its debt of 7.8 percent, a cost of equity of 12.4 percent, and a cost of preferred stoc
    8·1 answer
  • Based on its growth prospects, a private investor values a local bakery at $750,000. She believes that cost savings having a pre
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!