Assignment: Joy's frozen yogurt shops have enjoyed rapid growth in northeastern states in recent years. From the analysis of joy's various outlets, it was found that the demand curve follows this pattern. Q = 200 - 300P + 120 I + 65T- 250Ac + 400 Aj
Q= number of cups served
I= per capita income
T= average outdoor temperature
Ac= competition's monthly advertising expenditure
Aj=joy's own monthly advertising expenditures
P =1.50, I = 10, T = 60, Ac =15, Aj = 10
a) Estimate the number of cups served per week and determine outlet demand curve.
b) What would be the effect of a $5000 increase in the competitors' advertisement expenditure and outlet demand curve
c) What would joy's advertising expenditure have to be to counteract this effect?