Reference no: EM131171056
A travel company has hired a management consulting company to analyze demand in twenty-six regional markets for one of its major products: a guided tour to a particular country. The consultant uses data to estimate the following equation:
Q = 1,500 – 4P + 5A + 10I + 3PX
Where Q = amount of the product demanded
P = price of the product in dollars
A = advertising expenditures in thousands of dollars
I = income in thousands of dollars
PX = price of some other travel products offered by a competing travel company
a. Calculate the amount demanded for this product using the following data:
P = $400
A = $20,000
I = $15,000
PX = $500
Q = 1,500 – 4P + 5A + 10I + 3PX
My math:
Q = 1500 – 4 * 400 + 5 * 20000 + 10 * 15000 + 3 * 500
Q = 1500 – (4*400) + (5*20000) + (10*15000) + (3*500)
Q = 1500 – 1600 + 100000 + 150000 + 1500
Q = 1500 – 253100 = -251600 (this is probably wrong, but I don't know what I did wrong).
b. Suppose the competitor reduced the price of its travel product to $400 to match the price of this firm’s product. How much would this firm have to increase its advertising in order to counteract the drop in its competitor’s price? Would it be worth it for them to do so? Explain.
c. What other variables might be important in helping estimate the demand for this travel product?
|
How the organization uses the appraisal assessments
: How the organization uses the appraisal assessments to identify employee roles, the current appraisal systems, performance ratings, and Telespazio's practices for performing appraisal interviews.
|
|
Largest positive integer that can be represented
: 1. What is the largest positive integer that can be represented as an unsigned integer on 8 bits. (Write your answer in binary and decimal).
|
|
Write a definition essay on the term joy
: Write a definition essay on the term "JOY".- description, comparison and contrast, and persuasion (argumentation) to produce a well-developed definition for your term or concept.
|
|
Specify the number of bits required for the converter
: For the 40 phon sound level shown in Fig. 11.12 an A/D converter is to be provided to assure a resolution of ±1 dB at the minimum SPL condition while also providing a voltage output of 0.4 V at the 80-dB SPL condition. Specify the number of bits r..
|
|
Twenty-six regional markets for one of its major products
: A travel company has hired a management consulting company to analyze demand in twenty-six regional markets for one of its major products: a guided tour to a particular country. Calculate the amount demanded for this product using the following data:..
|
|
Research american trade agreements
: Include in your research American trade agreements such as the NAFTA (North American Free Americas Agreement) and the proposed trade agreements of the FTAA (Free Trade Area of the Americas), TAFTA (Transatlantic Free Trade Area), and the Trans-Pac..
|
|
Comparative advantage and relative marginal opportunity cost
: Considering what you have learned about "comparative advantage" and relative "marginal opportunity costs," discuss the advantages and disadvantages to all involved parties (American workers, American consumers, foreign workers, and foreign consume..
|
|
Determine the number of bits required
: An A/D converter is to be designed for a special instrument that will accommodate type N thermocouples (see Table 8.3a) operating over the range of 0 to 1000?C. A resolution of 0.5?C at 25?C is desired. Determine the number of bits required and th..
|
|
Results and the other computations from assignment
: Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates.
|