You work in the Economic Planning Department of a consultants, Econ Consult. You have been asked by the Managing Director to work in a small group with 3 other people to write a response to the following enquiry.

Company Name : We need to know
Contact Name : Dr J Jack
Company Address : Room 101, 77 Old Road, Bath, NW29

How would you recommend that a firm producing good Y reacts to the following price changes in good X?

Scenario 1

• Final Price of Good X = 60
• Final Quantity of Good Y = 55

Scenario 2

• Final Price of Good X = 40
• Final Quantity of Good Y = 35

Given that

• Original Price of Good X = 50
• Original Quantity of Good Y = 50

Your findings need to be presented in two ways, the first will be as a written report with covering letter, second will be as a question and answer session on the content of the report.

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