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June 27, 2021

Explain how you might estimate the demand for the product used in the article given

General Questions

Explain how you might estimate the demand for the product used in the article given. Be specific and include a description of the variables you would use and why you would use them. Be sure to discuss how you would collect the data on the variables you need. Is your demand curve price elastic, inelastic or arc elastic and why? Now discuss how income elasticity and cross price elasticity for a substitute might be valued. Are they elastic, inelastic or arc elastic with respect to income and your substitute? What would be an appropriate revenue strategy for your product if the price of your substitute dropped 30%? Defend your answer and cite your sources.

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