1)Suppose that News Corp

1)Suppose that News Corp., which controls the United States' largest satellite-to-TV broadcaster, is contemplating launching a Spaceway satellite that could provide high speed Internet service. Prior to launching the Spaceway satellite, suppose that News Corp. used least squares to estimate the regression line of demand for satellite Internet services. The best-fitting results indicate that demand is Qosat = 152.5 -0.8Psat + 1.2PDSL + 0.5P cable (in thousands), where Psat is the price of satellite Internet service. PosL is the price of DSL Internet service, and cable is the price of high-speed cable Internet service. Suppose that after the FCC's ruling the price of DSL, POSL. is $25 per month and the monthly price of high-speed cable Internet. Pcable. is $50. Furthermore, News Corp. has identified that its monthly revenues need to be at least $15 million to cover its monthly costs. If News Corp. set its monthly subscription price for satellite Internet service at $55, how much revenue would it earn? Instruction: Enter your response rounded to two decimal places. $ million Is it possible for News Corp. to cover its cost given the current demand function?

2)Starbucks's marketing department estimates the income elasticity of demand for its coffee to be 1.55. how will the prospect of an economic bust (expected to decrease consumers' incomes by 3 percent over the next year) impact the quantity of coffee Starbucks expects to sell? Instruction: Enter your response rounded to two decimal places. It will change by percent.