Mcguigan, 2014 Price Elasticity And Macroeconomics: Price Elasticity

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McGuigan, Moyer & Harris (2014) price elasticity of demand measured by the changes that affect at least one-factor price, advertising, promotion, packaging or income levels (p.64). However, my supervisor needs the elasticities for each independent variable using the regression equation above and adding values, P= 500, PX= 600, I= $5,500, A= $10,000, M=5,000. Adding the P, PX, I, A, and M value to the regression table: QD= - 5,200 – 42(500) + 20(600) + 5.2(5,500) + 0.20(10,000) + 0.25(5,000) = 17,650. McGuigan, Moyer & Harris (2014) describes the price elasticity of demand ratio of the percentage change in quantity demanded to the percentage change in price if all other factors of demand continue to be untouched (p.72).
Price of Product Elasticity: …show more content…

Additionally, the equilibrium price, the quantity can be seen on the graph above indicated at the point where the supply and demand curve meets.
D. Assume 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 cents. Outline the significant factors that could cause changes in supply and demand for the low-calorie, frozen microwavable food. 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.

According to Berg (1972) calculate losses due to the inefficiencies, demand that are statistically estimated and used in a discussion of market efficiency (p.33). The demand for low-calorie food can change if there is a change in consumer income, the pricing of competitor product and the price of goods such as complimentary microwave oven. This shift can happen because of consumer taste and preference.

5. Indicate the crucial factors that could cause rightward shifts and leftward shifts of the demand and supply curves for the low-calorie, frozen microwavable

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