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[MT445 | Managerial Economics] Unit 2 Assignment Student Name: Matthew Walker Please answer the following questions. Submit as a Microsoft Word...

need help with the attached document. Everything after d. The price of sugar increases

[ MT445 | Managerial Economics ] Unit 2 Assignment Student Name: Matthew Walker Please answer the following questions. Submit as a Microsoft Word® document to the Dropbox when completed. 1. Explain what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred (be sure to indicate WHY it happens as well): a. The price of Coke decreases. If the price decreases, demand would increase shifting the curve down. This is because a lower price would inspire people to purchase more. b. Average household income falls from $50,000 to $43,000 If the average household income falls there will be less money to spend. This will lower the demand because people will not be able to afford what they could before. c. There are improvements in soft-drink bottling technology. This would lead to a increase in supply shifting the curve to the right. This causes the equilibrium to have a higher demand and lower price. d. The price of sugar increases and the Pepsi launches an extremely successful advertising campaign. Of course the price of sugar increasing would lower demand raising the supply, but with the marketing campaign becoming successful this raised sales, which raises the demand back up. This question needs more information to decide if the price increase is made up for by the advertising. 2. Use the following equations for demand and supply to solve for market equilibrium price and quantity: Demand: Qd = 100 – 4P
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[ MT445 | Managerial Economics ] Supply: Qs = 10 + 6P 3. Using the diagram below, answer the following questions: a. How much is the per-unit tax on cigarettes? b. What price do consumers pay after the tax? c. How much tax revenue is collected? d. What is the amount of deadweight loss?
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Economics-8209581.doc

[MT445 | Managerial Economics] Unit 2 Assignment
Use the following equations for demand and supply to solve for market equilibrium
price and quantity: Demand: Qd = 100 – 4P
Supply: Qs = 10 + 6P...

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