Joy’s frozen yogurt shops have enjoyed rapid growth in northeastern states in recent years. From the analysis of joy’s various outlets, it was found…

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Joy’s frozen yogurt shops have enjoyed rapid growth in northeastern states in recent years. From the analysis of joy’s various outlets, it was found that the demand curve follows this pattern. Q=200-300P+120 I +65T-250Ac+400 Aj Q= number of cups served I= per capita income T= average outdoor temperature Ac= competition’s monthly advertising expenditure Aj=joy’s own monthly advertising expenditures P=1.50, I=10, T=60, Ac=15, Aj=10 a) Estimate the number of cups served per week and determine outlet demand curve b) What would be the effect of a $5000 increase in the competitors’ advertisement expenditure and outlet demand curve c) What would joy’s advertising expenditure have to be to counteract this effect?

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