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screenshot 2.pngThe multivariate demand function below will be needed for questions 12-18.

 

Setting: Grapple, Inc. is a leading seller of laptop personal computers. However, they want to become a leading tablet seller, too. Your marketing department, aided by your economics staff, has estimated a function to help you in the quest for market leader in tablets. The variables are defined after the function.

screenshot 2.png
The multivariate demand function below will be needed for questions 12-18.
Setting: Grapple, Inc. is a leading seller of laptop personal computers. However, they want to
become a leading tablet seller, too. Your marketing department, aided by your economics
staff, has estimated a function to help you in the quest for market leader in tablets. The
variables are defined after the function.
Q, =10000 - 25P + 20P + 30P, -15P -35P -10Pm + 0.05A +0.03A - 25C +0.1Y
Q: = the number of Grapple tablet computers demanded per week.
P = the price of each new Grapple tablet (in $)-
Ph = the price of each Hewpaq tablet (in $).
Pr = the price of each Ronova tablet.
Pay = the price to equip a tablet with Holographic digital video (in $, this is an upgrade option that
enables three dimensional graphics on a tablet. Two dimensional graphics is standard
equipment).
Pac = the price of various screen sizes (in $, a 8 inch is standard, but upgrade options are 10 inch
extra sharp, 12 inch, 12 inch extra sharp, Each also has a touch-screen option. The upgrades
get progressively more expensive as the size and capability increases).
Pmm = the price of memory chip upgrades (in $). More 2 Gigabyte (Gb) chips can be added. Of
course each added 2 Gb chip costs more. One 2 Gb chip is standard.
Y = average annual disposable income of a typical tablet purchaser (in $).
Ag = average age of a tablet purchaser (in years).
A = average annual Grapple advertising expenditure (in $).
C = number of computer systems the average tablet purchaser already owns.
12. If all variables remain unchanged except the price of a Grapple tablet (P ), which increases by
$50, then the quantity demanded of tablets will:
13. If all variables remain unchanged except the price of Ronova (Pr) tablets, which increases by
$50, then the demand for Grapple tablets will:

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Subject: Business, Economics

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