Business Finance Homework Help

Demand function specifies other
factors that management will often consider, including the design and
packaging of products, the amount and distribution of the firm’s
advertising budget, the size of the sales force, promotional
expenditures, the time period of adjustment for any price changes, and
taxes or subsidies. For this discussion forum, consider your favorite
consumer product (e.g. cell phone, car, cereal, restaurant, hair gel,
etc.) and describe the variables that might be part of the demand
function (i.e. substitute good, complementary good, income level,
advertisement, consumer preference, etc.) for this product. How would
you describe the elasticity of demand for this product – is it highly or
somewhat elastic or inelastic? Why?