# 4 question related to economic course

Question# 1

In order to attract more customers on Mondays (a slow day), Alex’s Pizza Shop in Austin decided to reduce the price of their pizza rolls from \$3.50 to \$2.50. As a result, Monday sales increased from 70 to 130. Also, Alex’s sales of soft drinks rose from 40 to 90.

a. Calculate the arc price elasticity of demand for the pizza rolls.

b. Calculate the arc cross-price elasticity of demand between soft drink sales and pizza

rolls prices.

Question# 2

You are just being employed as a business manager in a newly established company that intends to start producing milk in Saudi Arabia, and your responsibility involves making a proper recommendation to the Board of Directors on the product and the market entirely upon which the Board would make its decision. You are required to present to the Board of Directors whether the company should start producing milk by December 1st, 2018 or otherwise. Provide your justifications given your knowledge of managerial economics (minimum of 500 words and maximum of 1000 words).

Question# 3

The results of the demand forecast of Pizza is presented to you for analysis. As a new manager of the company, you are required to provide an explanation for this forecast given your knowledge of managerial economics so that the company would know what to concentrate on.

Y= 5.2 – 0.5P + 0.2S + 0.6X

(3.2)(9.3)(1.2)

R2 is 0.63;F-statistic is 3.8;t-statistics are the values in the bracket above

Whereby Y is the Quantity demand for coffee

P is the price of Pizza (in riyal)

S is the demand for Soft drink(in number of quantity)

X is the income of people in the market surveyed (in 1,000 riyal).

Question# 4

Select a company in Saudi Arabia and describes the nature and characteristics of the market structure of such company, and what the company can do to improve itself among its competitors (Maximum of 500 words)