BUS530 Module 1 Case 1.docx - Running head MANAGERIAL...

This preview shows page 1 - 3 out of 5 pages.

Running head: MANAGERIAL ECONOMICS 1 Trident University International Fairencada Armstead Supply and Demand Managerial Economics Module 1 Case BUS530: Managerial Economics Dr. John Gaze July 2, 2019
Image of page 1

Subscribe to view the full document.

BUSINESS ANALYTICS AND DECISION MAKING 2 Part A: Conceptual Questions 1. Suppose you own a pet shop. Your sales are decent but a marketing consultant tells you that you could increase your sales and be able to charge a higher price if you spend some money on local television ads. If the consultant is right, will advertising lead to an increase in quantity demanded? Or a shift in the demand curve? Both? Neither? Explain your answer and make sure to cite at least one of the required readings in your answer. Answer: Increasing the price will lead to an increase in quantity demanded and a shift in the demand curve. Increasing the price will cause a decrease in quantity demanded, because when prices increase consumers will not purchase as many products. However, by advertising he will interest more consumers which would cause a shift in the demand curve. Things that change demand include tastes and preferences, the composition or size of the population, the prices of related goods, and even expectations. A change in any one of the underlying factors that determine what quantity people are willing to buy at a given price will cause a shift in demand (Taylor, 2014). A rise in price of a good
Image of page 2
Image of page 3

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern