4.(a). Competition might be a worry for Toyota. PM = the price of Mazadas. Calculate the point Mazada cross-price elasticity of demand with PM = $20000 and PT = $20000 (which should make Qr = 270). Other variables are given at the top before question #1. The formula is: QT Pm dPm Qr ETM = (b). Does this elasticity indicate that the demand for Toyotas is relatively responsive to changes in the price of Mazadas? Explain why or why not.
4.(a). Competition might be a worry for Toyota. PM = the price of Mazadas. Calculate the point Mazada cross-price elasticity of demand with PM = $20000 and PT = $20000 (which should make Qr = 270). Other variables are given at the top before question #1. The formula is: QT Pm dPm Qr ETM = (b). Does this elasticity indicate that the demand for Toyotas is relatively responsive to changes in the price of Mazadas? Explain why or why not.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...
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Initial values are: PM = $20000 PG = $1.00 I = $15000 A = $10000
This function is: QT = 200 -.01PT +.005PM -10PG +.01I +.003A
please Answer from 4 to 5 complete
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5.(a). Calculate the point advertising
(b). Does this elasticity indicate that demand for Toyotas is very responsive to changes in advertising expenditures (thus suggesting that advertising is a very important way to increase sales)? Explain why or why not.
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