THIS IS DUE ASAP…LIKE TONIGHT IF POSS..The topic is HEALTH..

Literature Review

• Create a brief literature review that presents a fair and comprehensive analysis of relevant literature pertaining to the topic you chose in Week One. This page must include the following:
  • A brief introduction of the topic and its relevance (300 to 500 words).
  • Three to five peer-reviewed articles based on applied psychological research. Each of the articles must directly relate to your chosen topic.
  • A one- to two-paragraph (500 to750 words total) analysis and summary for each article.
  • A reference list at the bottom of the page, formatted according to APA style as outlined in the Ashford Writing Center.

Assignment 1: Demand Estimation
Due Week 3 and worth 200 points

Imagine that you work for the maker of a leading brand of low-calorie, frozen microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April.

For a refresher on independent and dependent variables, please go to Sophia’s Website and review the Independent and Dependent Variables tutorial, located athttp://www.sophia.org/tutorials/independent-and-dependent-variables–3.

Option 1
Note: The following is a regression equation. Standard errors are in parentheses for the demand for widgets.
QD       =          – 5200 – 42P + 20PX + 5.2I + .20A + .25M
(2.002)  (17.5) (6.2)    (2.5)   (0.09)   (0.21)
R2 = 0.55           n = 26               F = 4.88

Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables:

Q          =          Quantity demanded of 3-pack units
P (in cents)       =          Price of the product = 500 cents per 3-pack unit
PX (in cents)     =          Price of leading competitor’s product = 600 cents per 3-pack unit
I (in dollars)       =          Per capita income of the standard metropolitan statistical area
(SMSA) in which the supermarkets are located = $5,500
A (in dollars)     =          Monthly advertising expenditures = $10,000
M                     =          Number of microwave ovens sold in the SMSA in which the
supermarkets are located = 5,000

Option 2
Note: The following is a regression equation. Standard errors are in parentheses for the demand for widgets.

QD       =          -2,000 – 100P + 15A + 25PX + 10I
(5,234)  (2.29)   (525)   (1.75)  (1.5)
R2 = 0.85           n = 120             F = 35.25

Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables:

Q          =          Quantity demanded of 3-pack units
P (in cents)       =          Price of the product = 200 cents per 3-pack unit
PX (in cents)     =          Price of leading competitor’s product = 300 cents per 3-pack unit
I (in dollars)       =          Per capita income of the standard metropolitan statistical area
(SMSA) in which the supermarkets are located = $5,000
A (in dollars)     =          Monthly advertising expenditures = $640

Write a four to six (4-6) page paper in which you:

1. Compute the elasticities for each independent variable. Note: Write down all of your calculations.
2. Determine the implications for each of the computed elasticities for the business in terms of short-term and long-term pricing strategies. Provide a rationale in which you cite your results.
3. Recommend whether you believe that this firm should or should not cut its price to increase its market share. Provide support for your recommendation.
4. Assume that all the factors affecting demand in this model remain the same, but that the price has changed. Further assume that the price changes are 100, 200, 300, 400, 500, 600 dollars.
   1. Plot the demand curve for the firm.
   2. Plot the corresponding supply curve on the same graph using the following MC / supply function Q = -7909.89 + 79.0989P with the same prices.
   3. Determine the equilibrium price and quantity.
   4. Outline the significant factors that could cause changes in supply and demand for the product. Determine the primary manner in which both the short-term and the long-term changes in market conditions could impact the demand for, and the supply, of the product.
5. Indicate the crucial factors that could cause rightward shifts and leftward shifts of the demand and supply curves.
6. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

• Analyze how production and cost functions in the short run and long run affect the strategy of individual firms.
• Apply the concepts of supply and demand to determine the impact of changes in market conditions in the short run and long run, and the economic impact on a company’s operations.
• Use technology and information resources to research issues in managerial economics and globalization.
• Write clearly and concisely about managerial economics and globalization using proper writing mechanics.

1. Is The Home Depot’s liquidity situation such that current liabilities can be easily paid? Why or why not?
2. Are the company’s receivables “turning over” at a rate that should be pleasing to management? Why or why not? What actions might management consider taking to speed up collections?
3. Is the company’s inventory turning over at a satisfactory rate? Why or why not? Does the company maintain an adequate level of inventory to meet customer demand? Might it be the case that the company maintains TOO HIGH a level of inventory? Why or why not?
4. Based on the composition of the company’s CURRENT assets, what problems is the company likely to encounter if its inventories turn over at a much slower than expected rate?
5. How has The Home Depot’s profitability changed over recent years? On what measures are you basing your response? If you were one of the company’s corporate managers, would you be satisfied with the trend in gross profit? The trend in operating income? Why or why not?