《管理经济学》第四章

DemandAnalysisChapter4OVERVIEWMeasuringMarketDemandDemandSensitivityAnalysis:ElasticityPriceElasticityofDemandPriceElasticityandMarginalRevenuePriceElasticityandOptimalPricingPolicyCross-priceElasticityofDemandIncomeElasticityChapter4KEYCONCEPTSmarketdemandcurveelasticityendogenousvariablesexogenousvariablespointelasticityarcelasticitypriceelasticityofdemandelasticdemandunitaryelasticityinelasticdemandoptimalpriceformulasubstitutescomplementscross-priceelasticityincomeelasticitynormalgoodsinferiorgoods.counter-cyclicalnoncyclicalnormalgoodscyclicalnormalgoodsMeasuringMarketDemandGraphingtheMarketDemandCurveMarketdemandistotaldemand.EvaluatingMarketDemandDemanddiffersamongmarketsegments.Addsegmentdemandtogetmarketdemand.DemandSensitivityAnalysis:ElasticityElasticityConceptElasticitymeasuressensitivity.PointandArcElasticityPointelasticityreflectssensitivityofYtosmallchangesinX,εX=∂Y/Y÷∂X/X.ArcelasticityreflectssensitivityofYtobigchangesinX,EX=(Y2–Y1)/(Y2+Y1)÷(X2-X1)/(X2+X1).AdvertisingElasticityExamplePriceElasticityofDemandPriceElasticityFormulaPointpriceelasticity,εP=∂Q/Q÷∂P/P.Inallcases,εP0.PriceElasticityandTotalRevenuePricecutincreasesrevenueif│εP│1.Revenueconstantif│εP│=1.Pricecutdecreasesrevenueif│εP│1.UsesofPriceElasticityInformationPriceElasticityandMarginalRevenueHowElasticityVariesalongaDemandCurveAspricerises,sodoes│εP│.Aspricefalls,sodoes│εP│.PriceElasticityandPriceChangesMR0if│εP│1.MR=0if│εP│=1.MR0if│εP│1.PriceElasticityandOptimalPricingPolicyOptimalPriceFormulaMRandεParedirectlyrelated.MR=P[1+(1/εP)].OptimalP=MC/[1+(1/εP)].ThegapbetweenMRandPwillfallasthepriceelasticityofdemandincreases(inabsolutevalueterms).PriceElasticityandOptimalPricingPolicyOptimalPricingPolicyExampleDeterminantsofPriceElasticityEssentialgoodshavelow│εP│.Nonessentialgoodshavehigh│εP│.DeterminantsofpriceelasticityofdemandThegreaterthenumberofsubstitutegoodsthatareavailable,thehigherthepriceelasticityofdemande.g.movie.Thepriceelasticityofdemandwillbehigherthegreatertheproportionthatspendingontheitemisofconsumers’totalincomee.g.car.Thepriceelasticityofdemandwillbegreaterthelongerthetimeperiodallowedconsumerstoadjusttheirspendinghabitse.g.petrol.Cross-priceElasticityofDemandSubstitutesandComplementsCross-priceelasticityshowsdemandsensitivitytochangesinotherprices.εPX=∂QY/QY÷∂PX/PX.SubstituteshaveεPX0.ComplementshaveεPX0.IndependentgoodshaveεPX=0ornearlyzero.Cross-priceElasticityExampleIncomeElasticityNormalVersusInferiorGoodsIncomeelasticityshowsdemandsensitivitytochangesinincome.εI=∂Q/Q÷∂I/I.NormalgoodshaveεI0.InferiorgoodshaveεI0.TypesofNormalGoodsNoncyclicalgoodshave0εI1,spendingonsuchitemstendstoberelativelyunaffectedbychangingeconomicconditions.CyclicalgoodshaveεI1,demandisstronglyaffectedbychangingeconomicconditions.RelationshipbetweenincomeandproductdemandInferiorgoods(countercyclical)εI0Basicfoodstuffs,genericproducts,busridesNoncyclicalnormalgoods0εI1Toiletries,movies,liquor,cigarettesCyclicalnormalgoodsεI1Automobiles,housing,vacationtravel,capitalequipmentProblem1Thedemandforpersonalcomputerscanbecharacterizedbythefollowingpointelasticities:εP=-5,εPsoftware=-4,andεI=2.5.Indicatewhethereachofthefollowingstatementsistrueorfalse,andexplainyouranswer.A.Apricereductionforpersonalcomputerswillincreaseboththenumberofunitsdemandedandthetotalrevenueofsellers.B.Thecross-priceelasticityindicatesthata5percentreductioninthepriceofpersonalcomputerswillcausea20percentincreaseinsoftwaredemand.C.Demandforpersonalcomputersispriceelasticandcomputersarecyclicalnormalgoods.D.Fallingsoftwarepriceswillincreaserevenuesreceivedbysellersofbothcomputersandsoftware.E.A2percentpricereductionwouldbenecessarytoovercometheeffectsofa1percentdeclineinincome.Problem2Inanefforttoreduceexcessend-of-the-model-yearinventory,HarrisonFordoffereda1%discountofftheaveragepriceof4WDEscapeLimitedSUVssoldduringthemonthofAugust.Customerresponsewaswildlyenthusiastic,withunitsalesrisingby50%overthepreviousmonth’slevel.A.CalculatethepointpriceelasticityofdemandforHarrisonFord4WDEscapedLimitedSUVssoldduringthemonthofAugust.B.Calculatetheprofit-maximizingpriceperunitifHarrisonFordhasanaveragewholesale(invoice)costof$27600andincursmarginalsellingcostsof$330perunit.Problem3EnchantmentCosmetics,Inc.,offersalineofcosmeticandperfumeproductsmarketedthroughleadingdepartmentstores.ProductmanagerEricaKanerecentlyraisedthesuggestedretailpriceonapopularlineofmascaraproductsfrom$9to$12followingincreasesinthecostsoflaborandmaterials.Unfortunately,salesdroppedsharplyfrom16200to9000unitspermonth.Inanefforttoregainlostsales,Enchantmentranacouponpromotionfeaturing$5offthenewregularprice.Couponprintinganddistributioncoststotaled$500permonthandrepresentedasubstantialincreaseoverthetypicaladvertisingbudgetof$3250permonth.Despitetheseaddedcosts,thepromotionwasjudgedtobeasuccess,asitprovedtobehighlypopularwithconsumers.Intheperiodpriortoexpiration,couponswereusedon40percentofallpurchasesandmo