Home / Questions / Fali's Outfits is a well-known firm into new and trending fashion clothing in the Greater ...
Fali's Outfits is a well-known firm into new and trending fashion clothing in the Greater Accra region of Ghana. Following the large customer base, the firm decided to contract a consultant on how to increase their market share from the rapid growing market it is faced with. In 2020, the economic consultant contracted presented the following demand function as the estimate of the firms' product: Q = 2000 - 2Px + 3Py + 2M + 4AX Where Of is the quantity demanded for the product of Fali's Outfit, Py is the price of the cloths produced by Fali's Outfit, Py is the price of a related product "Obroni-wawu" (second hand clothing), M is the income available to the consumer and Ay is the unit of advertisement invested into the firm's product Requirements: a) How many units of Fali's Outfits will consumer purchase, if the firms' product sells for GHC 30. Obroni-wawu sells for GHC 20, the firm expends GHC 200 on advertisement and the consumers' income is GHC 100. [2 Marks b) Is Fali's Outfit product a normal good or an inferior good? Explain your answer. [1.5 Marks c) How would you describe the relationship between Fali's Outfit cloths and Obroni-wawu? [1.5 Marks d) Derive the demand function and the inverse demand function for Fali's product. [4 Marks]
Apr 17 2021 View more View Less
appropriate accounting and financial techniques to support your conclusions and recommendations. 1. Critically appraise Valex’s financial performance during 2013 relative...
May 24 2020No-Toxic-Toys currently has $250,000 of equity and is planning an $100,000 expansion to meet increasing demand for its product. The company currently earns $37,500 in net...
Feb 06 2020QD = 3,000 â€“ 10PQS = -1,000 + 10PWhere Q is the number of businesses that need services and P is the monthly fee, in dollars.a. At what average monthly fee would demand...
Jun 24 2020Suppose two stocks have a correlation of 1. If the first stock has an above average return this year, what is the probability that the second stock will have an above ave...
Jun 08 2021Distinguish among ionic, covalent, and metallic bonding.
May 19 2021A company began the year with retained earnings of $1,000. Net income for the year was $250, it repaid $350 of its line of credit balance, and it paid dividends to its sh...
Jun 02 2021Local Airways had the following results in the past two years:20092008Operating revenues624,000618,000Operating expenses625,000617,000Operating property365,000360,000Long...
May 11 2020If the marginal propensity to save increases, what happens to the consumption function?2. If MPC was equal to 0.5, would doubling your income double your consumption spe...
May 26 2020Rayon Blimp Company has the following inventory information available from a recent fiscal year:DateDescriptionUnitsUnit CostTotal CostFeb. 1Beginning Inv.20$50$1,000Marc...
Dec 25 2019company preparing for a Chapter 7 liquidation has the following liabilities:• Note payable A of $90,000 secured by land having a book value of $50,000 and a fair value of...
Jul 21 2020