Fastrack is the owner of a beer store in Antigua. His economist
suddenly resigned and he urgently needs a person with managerial economics
background to complete a project. He is clueless about economics but has some
information from his former economist. He has provided you with the
information.The coefficients (absolute values) and value ($) for the
following:R Price (of the main
product): 4476 and $9.95;R Price of the main rival beer:
2994.2 and $8.95; RAdvertising expenditure
for the company: 668.2 and $36RAdvertising expenditure
for the rival beer: 849.7 and $22In addition he has also indicated that there was a 37986.5
which the economist had referred to as the constant. You are required to do the following:a)
Construct the estimated demand function (use appropriate symbol for each
variable)[04 MARKS]
b)
Determine what effect a price increase will have on total revenue[02 MARKS]

c) What is the revenue
implication if there is a recession?[03 MARKS]

d) If
the competitor decreases its price by $0.4 and Fastrack wants to maintain the
present level of output what price should he charge? [01 MARK]