Effects of advertising on market equilibrium

Assignment Help Microeconomics

Reference no: EM1367249

Joy's frozen yogurt shops have enjoyed rapid growth in northeastern states in recent years. From the analysis of joy's various outlets, it was found that the demand curve follows this pattern. Q=200-300P+120 I +65T-250Ac+400 Aj

Q= number of cups served

I= per capita income

T= average outdoor temperature

Ac= competition's monthly advertising expenditure

Aj=joy's own monthly advertising expenditures

P=1.50, I=10, T=60, Ac=15, Aj=10

a) Estimate the number of cups served per week and determine outlet demand curve

b) What would be the effect of a $5000 increase in the competitors' advertisement expenditure and outlet demand curve

c) What would joy's advertising expenditure have to be to counteract this effect?

Reference no: EM1367249

Questions Cloud

Perfect competitive market for mnc : Draw the diagram showing the cost structure of price taker and a market price well above minimum average cost. Given that any firm is price taker, how can a firm capture any economic rent (profits in excess of opportunity cost of capital)?

What would be the speed of the last car : how much time passes before the police car overtakes the speeder after the speeder passes (assumed moving at constant speed).

Description of the pathophysiology : This solution explains the widely accepted definition of pain and the different kinds of pain which have been noted alongwith a brief description of the pathophysiology.

In what direction must his boat be headed : When the door is open and at rest, the door closer exerts a torque of 5.40 NxM. What is the least force that you need to be relevant to the door to hold it open.

Effects of advertising on market equilibrium : Estimate the number of cups served per week and determine outlet demand curve. What would be the effect of a $5000 increase in the competitors' advertisement expenditure and outlet demand curve

How can laser be tipped before light no longer continues : If a laser is to be pointed into the end of the fibre, but is "tipped" to one side by θ degrees, how much can the laser be "tipped" before the light no longer continues down the fibre?

Compute its average velocity for the entire trip : A small glass bead has been charged to + 10nC. A metal ball bearing 1.90cm above the bead feels a 1.20×10-2 N downward electric force. What is the charge on ball bearing.

What is the total distance the bird travels : Neglect friction, what steady force, applied at its outer edge and perpendicular to plane of the door, can move it from rest through an angle of 90° in 30 s.

Pupil awareness of healthy eating and physical activity : She feels that the after school club presents a great opportunity to develop pupil awareness of healthy eating and physical activity.

User Account

All Pages