Assignment -
You are presented with the following data from The Home Depot (THD) on sales of its Snowminator Snow Shovel during the winters of 2015-16 throughout Canada. The product's price (P), measured in Canadian Dollars, is: 30, 25, 20, 15, 10, 5 and 0. The corresponding quantity demanded in the western part of the nation, measured in millions of shovels, was: 0, 2, 4, 6, 8, 10, and 12. While the corresponding quantity demanded, measured in millions of shovels, in the eastern part of the nation was: 0, 1.5, 2.5, 3.5, 4.5, 5.5, and 6.5. Assume all the data was retrieved internally from The Home Depot.
a. In two separate graphs that you have created using Excel, clearly and accurately graph the demand and total revenue curves for the western part of Canada. These will be graph # 1 and # 2, respectively.
b. In a separate graph from part A above, clearly and accurately graph the demand for the eastern part of Canada. This will be graph # 3.
c. Solely consider your graphs and data in part A above. Following the demand curve from $30 all the way down to $0, explain by referencing only the demand and total revenue curves in part A, how a declining price can have three different impacts on total revenue.
d. Consider your knowledge of the determinants of the elasticity of demand and consider the two demand curves you have in part A and B above. A visual inspection clearly indicates the curves are of differing slopes. Take one concrete cause and address why the demand curve in B has a different slope when compared to that of A.
Graphs for this assignment must be properly constructed and created using Excel. Prepare your assignment as a Word document with embedded Excel charts. Number each step of the assignment.