Question $3($Background Information$)$

Question $3$:

Suppose you are the manager of a beverage company selling a juice under the brand

"Delicious". There are $2$ other major brands in the market, namely "Fresh", and "Organic and

Green". Your data analyst estimated the demand of your product and provide you with the

following information: The cross$-$price elasticity of "Delicious" in response to price change in

"Fresh" and "Organic and Green" are $0\mathrm{.}4$ and $-0\mathrm{.}03$ respectively. The income elasticity of

"Delicious", "Fresh" and "Organic and Green" are $-0\mathrm{.}01,-0\mathrm{.}02$ and $0\mathrm{.}05$ respectively. It is

expected that there is an upcoming economic recession.Question $4($Background Information$)$

Question $4$:

Brand A and Brand B are both new brands of earphones of similar price and availability. Both

are selling their products online and rely on social media for building their reputation. Brand

$A$ is of higher quality than Brand $B.$ Proportion of people who have more positive initial

impression towards Brand A and Brand B are $70\%$ and $30\%$ respectively. The pool of

consumers who like Brand A consists of more professional users who tend to be more

conservative and slower in making comment on social media, and they are also pickier. Quite

a large proportion of the consumers who like Brand $B$ has got a habit of providing comment

quick online.