Elasticity Paper – Option 2

Introduction

The purpose of this paper is to analyze the demand function for of 3-pack units of frozen food, which is represented by the following equation:

where

Q = Quantity demanded of 3-pack units

P (in cents) = Price of the product

PX (in cents) = Price of leading competitor’s product

I (in dollars) = Per capita income of the standard metropolitan statistical area

(SMSA) in which the supermarkets are located

A (in dollars) = Monthly advertising expenditures

The main objective of this paper is to compute the elasticity of all the predictors in the demand equation and to gather business conclusions based on the elasticity calculations.

Price: $14.23

Solution: The downloadable solution consists of 6 pages, 823 words and 2 charts.
Deliverable: Word Document