Assignment 1: Demand Estimation
a four to six (4-6) page paper in which you:
the elasticities for each independent variable. Note: Write down all of your calculations.
the implications for each of the computed elasticities for the business in
terms of short-term and long-term pricing strategies. Provide a rationale in
which you cite your results.
whether you believe that this firm should or should not cut its price to
increase its market share. Provide support for your recommendation.
that all the factors affecting demand in this model remain the same, but that
the price has changed. Further assume that the price changes are 100, 200, 300,
400, 500, 600 dollars.
the demand curve for the firm.
the corresponding supply curve on the same graph using the supply function Q =
5200 + 45P with the same prices.
the equilibrium price and quantity.
the significant factors that could cause changes in supply and demand for the
product. Determine the primary manner in which both the short-term and the
long-term changes in market conditions could impact the demand for, and the
supply, of the product.
the crucial factors that could cause rightward shifts and leftward shifts
of the demand and supply curves.
at least three (3) quality academic resources in this assignment. Note: Wikipedia does not qualify
as an academic resource.