managerial economics_7 - Timeless, Inc. imports and...

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Timeless, Inc. imports and distributes jewelry and sports watches. At the end of company’s fiscal year, marketing manager Alice Neil has asked you to evaluate sales of jewelry watches line using the following data. In particular, Neil asked you to estimate relevant demand elasticities. Only consider the months when the other important factors considered in the preceding table have not changed. The average arc elasticity of demand for each factor is simply the average of monthly elasticities calculated during the past year. a. Indicate whether there was a change in each respective independent variable for each moth during the past year. Month Number of Jewelry Watches Sold Changes in Sold Jewelry Watch Advertising Expenditures Changes in Ad Jewelry Watch Price, P Changes in P Sports Watch Price, PD Changes in PD July 4500 $10,000 $26 $50 August 5500 1000 10000 0 24 -2 50 0 September 4500 -1000 9200 -800 24 0 50 0 October 3500 -1000 9200 0 24 0 46 -4 November 5000 1500 9750 550 25 1 50 4 December 15000
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This note was uploaded on 08/28/2011 for the course IMBA 101 taught by Professor Trott during the Spring '11 term at National Cheng Kung University.

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managerial economics_7 - Timeless, Inc. imports and...

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