Explain what effect will be on mapcos sales

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Reference no: EM13213115

The economic analysis division of Mapco Industries has estimated the demand function for its lone of weed trimmers to be : Qd=18,000+0.4N-350Pm+90Ps where N=number of new homes completed in the primary market area Pm=price of the mapco trimmer; Ps=price of its competitor's Surefire trimmer In 2010, 15,000 new homes are expected to be completed in the primary market area. Mapco plans to charge $50 for its trimmer. The Surefire trimmer is expected to sell for $55. 1. what sales are forecast for 2010 under these conditions/ 2. If its competitor cuts the price of the Surefire trimmer to $50, what effect will this have on Mapco's sales? 3. What effect would a 30%reduction in the number of new homes completed has on Mapco's sales ( ignore the impace of the price cut of the Surefire trimmer?)

Reference no: EM13213115

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