3. Explain what we mean by internal and external reference prices –give examples for each. 4. Explain the value function and what each of these features imply: • It is flatter in the gains domain and steeper in the loss domain • It is a slanting s shape and flattens as gains and losses increase 5. Explain what we mean by multi attribute analysis or factors in purchase decision making. To help you do this, use the example that when we buy a car, we may consider the attributes of speed, paint quality, and seating capacity. Now explain how using prospect theory on each attribute we may have ‘perceived gains and losses’ with respect to our expectations or ‘reference levels’ for each attribute. 6. Give examples from advertising that would illustrate the principles that we do and should “segregate gains” and “integrate losses”. 7. Explain (you could use the value function to do this) how two discounts of $10 each, tend to have a greater impact than a single discount of $20.

• Read the situation below and answer the questions. Create a Word Doc then upload your document to this area.

  Handling Sales Resistance

  Brenda recently returned from a two-week training session that focused on how to handle sales resistance and how to earn a commitment. Brenda has become quite familiar with the ADAPT questioning system and knows she must use assessment questions to allow the buyer to describe their present situation. She has also developed a pretty good set of discovery questions that helps her identify the buyer’s pain and problems. Her challenge has been what to do with this information. Whenever Brenda attempts to use features and benefits to make her case, she encounters a myriad of objections. Brenda knows she has great products and service, but she has not been able to communicate this effectively to her prospects.

  The objection she hears most often is: “I’ve never heard of your company, how long have you been in business?” If that is not bad enough, she heard the following objections in just one morning:

  “I’m not sure I am ready to buy at this time, I’ll need to think it over.”

  “Your company is pretty new; how do I know you’ll be around to take care of me in the future?”

  “Your price is a little higher than I thought it would be.”

  “Your company was recently in the news. Are you having problems?”

  and finally,

  “I think your company is too small to meet our needs.”

  Brenda hears most of these objections right after she attempts to earn a commission. She is now getting a little gun shy about asking her prospects for the order.

  Brenda is sitting at her desk trying to figure out what to do next and she is not exactly sure how to proceed.

  Questions

  1. What would you recommend Brenda do to handle the challenges she faces?
  2. Brenda appears to have an advantage with her products and services. Develop a plan for Brenda to overcome the sales resistance she is receiving.
  3. Use the LAARC process to develop the suggested dialogue Brenda can use to address one of the major types of resistance she is receiving.
  4. What can Brenda do in the future to encounter less sales resistance when she asks for the order?

What is leadership in the nonprofit sector? Is it different than in the private or public sectors?  

Part I: Using a well labeled graph and words that explain your graph, show the short run average variable cost curve and the marginal cost curve. Explain the shapes of the two cost curves. Where do the two cost curves intersect? Why?

How does health affect income and income affect health of the workers? What is the multiplier effect? Explain by using graphical expositions and examples.

What problems does the Bureau of Labor & Statistics face in measuring unemployment? Discuss the three problems that make the consumer price index an imperfect measure of the cost of living.

Instructions: Work on the following questions/problems. Be sure to answer all questions (and sub questions within a problem).

• USE this as you answer sheet (adjust spacing as necessary). Show solutions.
• This worksheet can be handwritten BUT be sure it is legible
• Upload work to the designated link in Canvas

1. (15 points) Suppose John, the owner-manager of a local hotel projects the following demand for his rooms:

                        Price ($)          Qty. Demanded

                        90                    100

                        110                  90

                        130                  70

1. Calculate the price elasticity of demand between $90 and $110 using the midpoint formula
2. Is the price elasticity of demand elastic, inelastic, or unit elastic at this price range (re: a)? Interpret the actual number you calculated.
3. Is it a good idea for John to raise his price from $90 to $110? Explain in 2 sentences.
4. Calculate John’s total revenue when price is $110 vs. when price is $130.
5. Based on your answers in (d), is demand elastic, unit elastic or inelastic at that price range (re: d)?

2. Consider the two products – laundry soap and Tide washer soap. Which product will have the more inelastic demand? Explain in 2-3 sentences. (5 points)

3. TRUE or FALSE. Suppose the market for crude oil experiences a decrease in demand. Assuming a relatively inelastic supply for crude oil, this market shock leads to a relatively smaller decrease in equilibrium price. Include a graph to illustrate and explain in 2-3 sentences (5 points).

Beginning in 2018, The U.S. imposed high tariffs on goods imported from several countries. Answer this questions about the tariffs:

1. On what goods from what countries and at what rates have tariffs been imposed, and what are the values of the goods on which the tariffs have been imposed?

You have been analyzing the cereal market for some time now. Your boss is the chief operating officer of Cheeros, a cereal selling in the same market as General Mills, and many other brands. You have made the following notes that you are about to present to him in your next meeting:

--change in quantity demanded for the total cereal industry last month = -3 percent

--change in the average price of cereals for the industry last month = +2 percent

--change in quantity demanded for Cheeros last month = -5 percent

--change in price per unit of Cheeros cereal last month = +2 percent.

What can you conclude about consumer sensitivity to Cheeros in relation to the rest of the cereal market? Why do you think this is the case?

Discuss three other social problems associated with the use of Facebook, and recommend a solution for each problem.

A monopolist faces a market demand curve given by P(y)=100-y. Its cost function is C(y)=y2+20.

a) Find its profit-maximizing output level and market price.

b) Calculate its total revenue, total cost and profit at that output.

c) Calculate CS, PS and DWL? d) What is the efficient amount of output?

e) Plot the graph for this monopolist indicating P(y), MR, MC, y*, p(y*), CS, PS, and DWL.

Tom has a weekly allowance of $24, all of which he spends on pizza and movie rentals. Pizza is $6 a slice and rentals are $3 each.

1. Make a table for slices 0 to 8, which have the following total utility………..0, 20, 36, 48, 58, 66, 72, 76, 78.

Include in the table the movie rentals from 0-8 which have the following total utility…..0, 40, 46, 50, 54, 56, 57, 57, 57

HINT- It is marginal utility that will decide this; include that on the table as well. Oh, no, it is actually marginal utility per dollar that you need. Include that as well in your table and now you are ready to solve. Explain your process.

          PIZZA                                                   MOVIES

Q     T.U.     M.U .   MU/P                          Q   T.U.   M.U.   M.U./P

0      0                                                             0     0

1     20                                                            1    40

2     36                                                            2    46

3     48                                                            3    50

4     58                                                            4    54

5     66                                                            5    56

6     72                                                            6    57

7     76                                                            7    57

8     78                                                            8    57

2. How many movie rentals and pizza slices should Tom consume each week? Show work and explain.
3. What is Tom’s total utility from consuming the pizza and movies? Show.

Please answer at least in 300 words. Please do NOT copy and paste from another source.

Discuss the differences between the traditional HDI in comparison to the “new” (NHDI) formulation. In what ways do you think either one is a better measure of human development?

Suppose a consumer has preferences represented by the utility function U(X,Y) = MIN[X,2Y]. Suppose PX = 1 and PY = 2. Draw the Income Consumption Curve for this consumer for income values M = 100, M = 200, and M = 300. Your graph should accurately draw the budget constraints for each income level and specifically label the bundles that the consumer chooses for each income level. Also, for each bundle that the consumer chooses, draw the indifference curve that goes through that bundle.