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Utility, Elasticity, and Demand
Suppose that you are in charge of designing a product campaign for a new shampoo. This campaign will include, among others things, the components of marketing, pricing, and distribution. What will be the ultimate goal of the campaign and what will be your methods for achieving this goal? Prepare a 2-3 page paper in Microsoft Word explaining your answer. Include in your response a discussion and analysis of the concepts of utility, price elasticity, and demand. All written assignments and responses should follow APA rules for attributing sources.
Also, prepare a document using Microsoft Excel which illustrates the desired effect of the marketing campaign as a shift in market equilibrium with reference to price and quantity adjustments. Finally, prepare a document using Microsoft Excel which illustrates how a change in consumer utility affects the price elasticity of demand.
If you want to learn how to use Microsoft Excel to create curves, refer to the MS Excel tutorials placed to the right.
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Assignment 2 Grading Criteria |
Maximum Points |
||
|
Discussed the components of marketing, pricing, and distribution as elements of the campaign. |
8 |
||
|
Discussed and analyzed the concepts of utility, price elasticity, and demand in relation to the chosen marketing strategy. |
32 |
||
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Illustrated the desired effect of the marketing campaign as a shift in market equilibrium with reference to price and quantity adjustments. |
20 |
||
|
Illustrated how a change in consumer utility affected the price elasticity of demand. |
|||
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Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources, displayed accurate spelling, grammar, and punctuation. |
|||
|
Total: |
100 |
Assignment 3: Demand and Supply
The use of E-Books has increased in recent years, especially with the advent of mobile E-Readers. A marketing research firm recently developed the following supply and demand schedules for E-books:
|
Price/E-Book |
Quantity Demanded |
Quantity Supplied |
||
|
$1 8 |
4000 |
10,000 |
||
|
1 6 |
5000 |
9500 |
||
|
1 4 |
60 00 |
9000 |
||
|
1 2 |
7000 |
8500 |
||
|
10 |
8000 |
|||
|
9 |
7500 |
|||
| 8 |
10000 |
|||
|
7 |
11000 |
6500 |
||
| 6 |
12 000 |
|||
|
5 |
13000 |
5500 |
||
| 4 |
14000 |
|||
| 2 |
15000 |
4500 |
Questions:
1. Construct a graph showing supply and demand in the E-Book market, using Excel.
2. How are the Laws of Supply and Demand illustrated in this graph? Explain your answers.
3. What is the equilibrium price and quantity in this market?
4. Assume that the government imposes a price floor of $12 in the E-Book market. What would happen in this market?
5. Assume that the price floor is removed and a price ceiling is imposed at $6. What would happen in this market?
6. Now assume that the price of E-Readers (used with E-Books) drops by fifty percent. How would this change impact the demand for E-Books? Explain your answer and reconstruct the graph developed in question one to show this change.
Present your analysis in Excel format. Enter non-numerical responses in the same worksheet using textboxes.
If you want to learn how to use Microsoft Excel to create curves, refer to the MS Excel tutorials placed.
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Assignment 3 Grading Criteria |
Maximum Points |
|
Correctly constructed the supply and demand graph. |
12 |
|
Answered Question 2-5 correctly, 15 points each. |
60 |
|
Answered question 6 correctly and correctly constructed a new supply and demand graph. |
8 |
|
Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling, grammar, and punctuation. |
20 |
|
Total: |
100 |
