Calculate the % Change in price and % Change in Demand for each store (note: you

Question

Calculate the % Change in price and % Change in Demand for each store (note: you cannot calculate this for Test Market D stores because it is the final value in the series). Assume the lower price is acting as a base. (Round to one decimal place.) Total Avg. Avg. Monthly Price per Bubble Monthly Bubble % Change in Bubble Tea Store Tea Store Sales Revenue % Change in Demand Tea Price Current price 160 $3.50 $560 28.6 % 12.5 % 14.3 % Test Market A 140 $4.50 $630 22.2% Test Market B 120 $5.50 $660 18.2% 16.7% 100 $6.50 Test Market C Test Market D $650 $600 80 $7.50 D – at r ET | 1D i i 1, (D) More

Explanation / Answer

Percentage change in Demand = [(Demand of latest Market - Demand of previous market)/ Demand of previous market]*100

Percentage change in Demand For test Market A = [(140-160)/160 ]*100 = 12.5%

Percentage change in Demand For test Market B = [(120-140)/140 ]*100 = 14.3%

Percentage change in Demand For test Market C = [(100-120)/120 ]*100 = 16.7%

Percentage change in Demand For test Market D = [(80-100)/100 ]*100 = 20%

Percentage change in Price = [(Price of latest Market – Price of previous market)/ Price of previous market]*100

Percentage change in Price For test Market A = [(4.5-3.5)/ 3.5]*100=28.6%

Percentage change in Price For test Market B = [(5.5-4.5)/ 4.5]*100=22.2%

Percentage change in Price For test Market C = [(6.6-5.5)/ 5.5]*100=18.2%

Percentage change in Price For test Market A = [(7.5-6.5)/ 6.5]*100=15.4%

Store Sale Price Total Revenue Percentage change in Demand = [(Demand of latest Market - Demand of previous market)/ Demand of previous market]*100 Percentage change in Price = [(Price of latest Market - Priceof previous market)/ Price of previous market]*100 Current Price 160 3.5 560 12.5 28.6 Test Market A 140 4.5 630 14.3 22.2 Test Market B 120 5.5 660 16.7 18.2 Test Market C 100 6.5 650 20 15.4 Test Market D 80 7.5 600

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