Briefly explain the importance of forecasting for managers, Managerial Economics

Assignment Help:

Question:

i) Briefly explain the importance of forecasting for managers?

ii) To what extent will managers rely on surveys in business forecasting?

iii) What do you meant the quantitative methods of forecasting?

iv) Consider John Corporation is a personal computer retailer. The company hires an economist to determine the demand for its product and reports the following equation:

Qa = 100 - 2Pa + Pb + 0.5Y

where Qa is the demand for the company's product, Pa is the price charged by the company, Pb is the price of computers from another company and Y is the income per capita.

a. Evaluate whether demand is elastic or not.

b. Evaluate the cross elasticity of demand. Are the products substitutes or complements. Describe

c. Evaluate the income elasticity of demand. Interpret your result.

Pa = 10
Pb = 2
Y = 50


Related Discussions:- Briefly explain the importance of forecasting for managers

Movements along supply curve, Movements along the supply curve Movemen...

Movements along the supply curve Movements along the supply curve are brought about by changes in the price of the commodity. When price increases from P1 to P2, quant

Costs of economic growth, Costs of Economic Growth (Increase in National In...

Costs of Economic Growth (Increase in National Income) 1.     People living in industrial towns suffer from the effects of a polluted atmosphere. 2.     The manufacture of

Real economies of scale, Real economies are delineated as those which are a...

Real economies are delineated as those which are associated with a reduction in the physical quantity of inputs like raw materials, varying kinds of labour and various kinds of cap

Aggregate demand, AGGREGATE DEMAND This refers to the total planned or...

AGGREGATE DEMAND This refers to the total planned or desired spending in the economy as a whole in a given period. It is made up of consumption demand by individuals, planned

Functions of budget, Functions of the Budget The budget fulfils three ...

Functions of the Budget The budget fulfils three main functions: To raise revenue to meet government expenditure The government of a country provides certain se

Does capital inflow lower us interest rates, Basic textbook models, such as...

Basic textbook models, such as the Mundell-Fleming model, say that capital inflow happens due to the domestic interest rate being higher than the world interest rate, and therefore

Market structure, what kind of market structure is involved for the sale of...

what kind of market structure is involved for the sale of medicines and vitamins? explain

Meaning of inflation, Meaning of Inflation There has been a proliferati...

Meaning of Inflation There has been a proliferation of definitions of inflation. Many of these definitions, however, embody the description of the processes by which the underl

Factors affecting the total market demand, Factors affecting the total mark...

Factors affecting the total market demand These are broadly divided into the determinants of demand and conditions of demand. (a)      Own price of the product This

Contracting and insider-outsider models of unemployment, CONTRACTING AND IN...

CONTRACTING AND INSIDER-OUTSIDER MODELS OF UNEMPLOYMENT   From  the  Walrasian  assumption  of  a market-clearing wage  on  efficiency considerations  -  it was  postulated  th

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd