Supply and demand --------------- Joy\'s frozen yogurt shops have enjoyed rapid

Question

Supply and demand --------------- 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?

Explanation / Answer

a)Estimate the number of cups served per week by this outlet. Also determine the outlet’s demand curve. Ans : no of cups= 5100 .b) What would be the effect of a $5,000 increase in the competitor’s advertising expenditure? Illustrate the effect on the outlet’s demand curve. Ans : 100, curve will declinec) What would Joy’s advertising expenditure have to be counteract this effect? Ans : should decrease

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.