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Problem A: The Board of Schmeckt Gut was interested in the demand for our energy bars in Atollia.

Problem A:

The Board of Schmeckt Gut was interested in the demand for our energy bars in Atollia. Therefore,

the Board instructed the Research Department of Schmeckt Gut to conduct a survey in Atollia. The

results of the survey are provided in Table 1.


Table 1 - Survey results for Atollia

Annual average demand of energy bars per person


Average income per person


Tariff rate on imports of energy bars


Number of stores where energy bars are offered


106 15500 5 15

90 15810 5 15

93 16395 5 15

92 16887 5 15

91 17495 5 15

110 18282 5 16

109 19013 5 16

122 19508 5 16

82 19898 10 16

84 20276 10 16

102 20702 10 17

92 21550 10 17

115 22197 10 20

112 22330 10 20

109 22754 10 20

148 23619 7.5 20

143 23855 7.5 20

139 24452 7.5 20

158 24941 7.5 23

142 25514 7.5 23

158 25948 7.5 23


1. Using the results of the survey provided by the Research Department, see Table 1, the Board

would like you to investigate the demand for our energy bars in Atollia in more detail. More

specifically the Board is interested what the impact of offering our products at another store

might have on the demand.


Hint A: You should make use of Microsoft Excel tools discussed in the Module End

Learning Activities of Modules 1 to 3.


Hint B: You should run a linear regression analysis to investigate the potential impact

of offering our product at another store.


Problem B:

The members of the Board of Schmeckt Gut are scheduled to meet with the Trade Minister of

Industria. The Board is interested in convincing the Government of Industria to establish closer

economic links with Atollia.

1. Based on the regression results that you have estimated as part of Problem A, what can we

tell the Trade Minister about the impact of the tariff?

2. Use an applicable diagram discussed in Module 4 to explain the impact of the tariff on our

energy bars.


Problem C:

The Board of Schmeckt Gut wants to convince the Government of Industria that a Free Trade

Agreement with Atollia would be beneficial for Industria's economy.

1. Develop a brief for the Board on the benefits of Free Trade for both countries and industria

in particular. Incorporate the results of your regression analysis and use theory and graphical

support

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