CASE 1 - DEMAND ESTIMATION and ELASTICITY: Soft Drinks in the U.S. Demand can be estimated with experimental data‚ time-series data‚ or cross-section data. In this case‚ cross-section data appear in the Excel file. Soft drink consumption in cans per capita per year is related to six-pack price‚ income per capita‚ and mean temperature across the 48 contiguous states in the United States. QUESTIONS 1. Given the data‚ please construct (a) a multiple linear regression equation and (b) a log-linear
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Demand and Elasticity Linear demand curve: Q = a – bP Elasticity: E d = (ΔQ/ΔP)/(P/Q) = -b(P/Q) E d = -1 in the middle of demand curve (up is more elastic) Total revenue and Elasticity: Elastic: Ed < -1 ↑P→↓R (↑P by 15%→↓Q by 20%) Inelastic: 0 > Ed > -1 ↑P→↑R (↑P by 15%→↓Q by 3%) Unit elastic: Ed = -1 R remains the same (↑P by 15%→↓Q by 15%) MR: positive expansion effect (P(Q) – sell of additional units) + price reduction effect (reduces revenues because of lower price (ΔP/ΔQ)/Q)
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India • Appy Fizz • Banta (lemon-flavored soft drink) • Bovonto (grape soda produced by Kali Mark) • Campa Cola (popular Indian soda introduced in 1977) • Cloud 9 (energy drink) • Coca-cola • Frooti (mango-flavored drink from Parle Agro) • Gold Spot • Guptas (8 flavoreds soft drinks introduced in 1947) • h2o (powered carbonated soda) • Limca (lemon-lime soda) • LMN (lemon drink produced by Parle Agro) • Mangola Slice • Maaza (mango drink from Coca-Cola) • Mohammad Cola • Mountain
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Soft drink consumption has increased substantially over the last 50 years and it has been established that using large amounts of soft drinks regularly can be detrimental to your health. If used in moderation soft drinks can have some beneficial effects on your body. Caffeine Benefits Caffeine is a stimulant that is found in soft drinks. It large amounts can have detrimental effects on your health but it also has numerous benefits. Caffeine stimulates your central nervous system‚ helps breakdown
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The Irish have an excellent sense of humor‚ and if you spend much time around them‚ you’ll discover it for yourself. These are just some of the funny Irish words and phrases you can pick up if you keep your ear to the ground. Have a Drink! Beer is the Irish drink of choice‚ and they brew it very well. But don’t overindulge‚ or the bar patrons might think you’re “fluthered.” That’s when you can’t keep your butt on your bar stool. Want a pint of great beer? Don’t ask for a glass. Tell the bartender
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1. Olena CanessaMKT – 300Case Study: Oscar Mayer (Harvard Business Review)Case AnalysisOscar Mayer Foods‚ according to the report of McTiernen Corp‚ is facing two major challenges that are going to affect company’s future profitability: The increasing popularity of healthier products with less fat and salt content.The increasing demand on products that are more convenient to cook and easy to consume.Overall red meat consumption level has decreased nationwide about 7‚28%‚ while white meat demand dramatically
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Assignment Demand Estimation 04-Dec-12 Liaqat Group Submitted To: Prof. Babar Hussain What Is Demand Estimation? When running a small business‚ it is important to have an idea of what you should expect in the way of sales. To estimate how many sales a company will make‚ demand estimation is a process that is commonly used. With demand estimation‚ a company can gauge how much to produce and make other important decisions. Definition: Demand estimation is a process
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Project of Demand Estimation Due Oct. 31st Instruction: You should prepare the case with your group members. Each group is required to submit a word file detailing your analysis. You will be graded on your group’s performance and your contribution to your group. Summary of the case: You work for Price Waterman Coopers as a market analyst. PWC has been hired by the owner of two Burger King restaurants located in a suburban Atlanta market area to study the demand for its basic hamburger meal
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Elasticity of Labour Demand A firm always incurs a change in labour or capital. It is important for a firm to know the effects on the wage or capital increase since it would help the firm make accurate decisions. A change in wage would make an impact on the firms employment. When there is a wage cut‚ it reduces the price of labour relative to that of capital‚ and now labour is cheaper. However‚ when the wage increase the price of labour increases and the firm would substitute away from labour toward
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For every meal‚ snacks‚ parties‚ gatherings with friends or co-workers‚ or even just sitting back watching television‚ there is always that incessant presence of a can or a glass of one’s favorite carbonated drink. For most people‚ especially for adolescence‚ these sugary carbonated drinks liven up the quality of the food or even the company‚ or provide that quenching ‘kick’ for the thirsty‚ something that water sometimes cannot do. Unfortunately a liter of soda can contain 700 calories (US Department
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