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ECON6000 Economic Principles And Decision Making

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Problem A:

The Board of Schmeckt Gut was interested in the demand for our energy bars in Atollia. Therefore,the Board instructed the Research Department of Schmeckt Gut to conduct a survey in Atollia.

  1. Using the results of the survey provided by the Research Department, see Table 1, the Boardwould like you to investigate the demand for our energy bars in Atollia in more detail. Morespecifically the Board is interested what the impact of offering our products at another storemight have on the demand.

Hint A:

You should make use of Microsoft Excel tools discussed in the Module EndLearning Activities of Modules 1 to 3.

Hint B:

You should run a linear regression analysis to investigate the potential impactof offering our product at another store.Module 5 - Assessment 2: Short written assessment

Problem B:

The members of the Board of Schmeckt Gut are scheduled to meet with the Trade Minister of Industria. The Board is interested in convincing the Government of Industria to establish closer economic links with Atollia.

  1. Based on the regression results that you have estimated as part of Problem A, what can we tell the Trade Minister about the impact of the tariff?
  1. Use an applicable diagram discussed in Module 4 to explain the impact of the tariff on our energy bars.

Problem C:

The Board of Schmeckt Gut wants to convince the Government of Industria that a Free Trade Agreement with Atollia would be beneficial for Industria’s economy.

  1. Develop a brief for the Board on the benefits of Free Trade for both countries and industria in particular. Incorporate the results of your regression analysis and use theory and graphical support.
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