We are interested in learning about the demand response to advertising for our product. We collect data and model our demand with the following linear equation: Q=bo + b1 Addollars + b2 Compads + b3 Adcopy Addollars is our advertising expenditures per 100 potential customers over 6 months, Compads is our rival's advertising levels in the same region over the same time period. We have two versions of our advertisement captured by: Adcopy = 1 for emotional, Adcopy = 0 for rational verbiage. We estimate the following coefficients: Estimate bo = 32.59 bi = 1.48 b2 = -0.57 b3 = 2.13 T-Stat (12.9) (4.4) (3.5) (1.1) We are also able to estimate our competitor's advertising levels: Compads = co + c • Addollars + C2 · Adcopy with the following results: Estimate Co = 9.713 c = 0.851 C2 = 9.083 T-Stat (3.6) (2.0) (4.7) (a) 6 points Assuming we use the emotional advertising copy, write out our general demand equation using our estimates from the table(s): (b) 6 points Suppose we set Addollars = 8, use your equation above to estimate our advertising elasticity. (c) 6 points Assuming our price elasticity of demand, n = -2, then our advertising level should be approximately what percentage of our sales?

1. revising for conciseness - eliminating flabby expressions, limiting long lead-ins, and dropping unnecessary fillerstime is money in any business environment. people want information communicated quickly and clearly. to make your writing more concise and understandable, avoid flabby expressions, long lead-ins, and unnecessary fillers. your audience will appreciate your brevity.1. if your writing contains a flabby expression like in view of the fact that, replace it with the word because / although / probably .for each of the following two sentences, choose the best revision.2. i am sending you this letter to inform you that we have experienced an unexpected surprise within our expense sheet, but we are positively certain we will solve it.1) we need to inform you that we have experienced an unexpected surprise with our expense sheet, but we are midway to an end result.2) we have identified a problem with our expense sheet, but we will solve it.3) i am sending you this letter to inform you that we have a problem with our expense sheet, but we are positively certain we have a solution.3. it is the user who should contact the center.1) everyone knows that it is the user who should contact the center.2) the user should contact the center.3) if there is a problem, the user should contact the center. read the following passage, and then answer the question.[1] you scheduled seven conference calls for this morning between 10 and 11 a. m. [2] generally, the company limits the number of conference calls to three per hour. [3] i’m letting you know that in the future, we should be more careful about scheduling.4. which revision limits the long lead-in in sentence 3? 1) in the future, we should be more careful about scheduling.2) i’m letting you know so that in the future we are more careful about scheduling calls.3) so that you know in the future, we should be more careful about scheduling.

How has apple been able to sustain its competitive advantage in the smartphone industry? a. by reducing its network effects b. by targeting its new products and services toward laggards c. by driving the price for the end user to zero d. by regularly introducing incremental improvements in its products

At fenway park, home of the boston red sox, seating is limited to 38,000. hence, the number of tickets issued is fixed at that figure. the following graph shows the demand and supply for red sox tickets. use the graph input tool to you answer the following questions. you will not be graded on any changes you make to this graph. 0 38 76 100 90 80 70 60 50 40 30 20 10 0 price of tickets quantity of tickets (thousands) demand supply graph input tool market for tickets price 10 quantity demanded (thousands of tickets) 68 quantity supplied (thousands of tickets) 38 tax on buyers 0.00 seeing a golden opportunity to raise revenue, the city of boston levies a per ticket tax of $5 to be paid by the ticket buyer. boston sports fans, a famously civic-minded lot, send in the $5 per ticket. true or false: the entire tax burden falls on the team’s owners because supply is perfectly inelastic. true false