[Author’s Name]
[Institution’s Name]
Introduction
Economics is the name of earning and utilizing the money. The real time definition of economics asked that how to earn the money and how to consume it. Economics is a broad field which has its recognition in almost every walk of life. This is one of the most important fields of the world and it has many things on which the entire theme works upon .
The literature of economics comes under the ambit of two different types, which predominantly are microeconomics and macroeconomics and both of these types are essential. By name, it is clear that microeconomics is the name of economics usually deals with the essence of economics relates with individual capacities, while the essence of economics specifically associated with the economical stance of the organizations as a whole, is known as macroeconomic.
There are number of concepts that come under the ambit of economics, and among them, the name of demand and supply is one of them. Demand and supply is one of the most critical and effective concepts which have their own significance and importance .
The main perspective of this assignment is to analyze and then forecast the demand of a certain thing. This is basically a scenario based assignment in which a company is trying to enter in a specific market and unaware with the power of market in this particular region . It is required to use the regression based statistics model from which the things could be analyzed and then forecasted as well. Current Price of the market along with the competitor’s pricing has also been given in the assignment which would be analyzed in this assignment accordingly.
Analysis & Findings
There is a data has been given with the current assignment and the data of the same is mentioned below,
It is important to analyze the relationship first between the income and market demand of the country. The relationship among the income and demand of the pizza in the country, as the computed correlation between both of these variables is -0.273, showing that when the income increase the demand of the pizza would decrease and vice versa.
It is found that advertising and market demand has a positive relationship each other, showing that the relationship between advertising and market demand is positive with a net proportion of 0.98. It means that the relationship among both of these variables is positive and high, showing that whenever advertising would increase, and the demand of the pizza would also increase accordingly. It means we, as a company has to increase the advertising stance accordingly in order to enhance the productivity accordingly.
The regression equation which has been used in this assignment would be
Y = A + BX ------------------------------------------------------------------------- (a)
Where A is the amount of variation
B = Relationship between the variables
The relationship among our prices and quantity demand of the pizza is 0.051 and it is positive as well, while the relationship among the competitor’s pricing and market demand of pizza is -0.029. There is no much difference among the average pricing of our company and the competitors as a whole, which means that there is no need to decrease the pricing of our company as it will not bring any sort of economic prosperity for the company as a whole. Forecasted figure of the market demand, pricing, competitive pricing, advertising and income is mentioned below accordingly in detail.
References
Arnold, R. A. (2008). Economics. New York: John WIly & Sons.
E. K. Hunt, . F. (2008). Economics: An Introduction to Traditional and Progressive Views. New York: McGraw Hill.
Wessels, W. J. (2006). Economics. Chicago: Adventure Works.
