You are planning to build a new home with approximately 2 comma 0002,000-2 comma 5002,500 gross square feet of living space on one floor. In addition, you are planning an attached two-car garage (with storage space) of approximately 450450 gross square feet. Develop a cost and revenue structure for designing and constructing, operating (occupying) for 1010 years, and then selling the home at the end of the 1010th year.

Four key marketing decision variables are price (p), advertising (a), transportation (t), and product quality (q). consumer demand (d) is influenced by these variables. the simplest model for describing demand in terms of these variables is: d = k – pp + aa + tt + qq where k, p, a, t, and q are constants. discuss the assumptions of this model. specifically, how does each variable affect demand? how do the variables influence each other? what limitations might this model have? how can it be improved?