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    Demand Equation for Joe's Frozen Yoghurt

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    The Market Demand for Joy's Frozen Yogurt is given as:


    Where Qd= Annual demand for frozen yogurt

    Phd= Price of hot dogs
    Psd= Price of soft drinks
    A= Advertising expenditures
    Pop= Percentage of the population

    If Phd = 100, Psd = 75, A = 20, Pop = 35

    How do you come up with the demand equation? How do you find out what the optimum price and quantity is that will maximize the profit for Joy's yogurt?

    © BrainMass Inc. brainmass.com October 10, 2019, 12:51 am ad1c9bdddf

    Solution Preview

    Qd = -100P + 1.5Phd - 5Psd + 20A + 15Pop

    Plug in Phd = 100, Psd = 75, A = 20 and Pop = 35 into the above equation. ...

    Solution Summary

    The demand equation for Joe's Frozen Yoghurt are given. A complete, neat and step-by-step solution is provided.