Demand equations derived from actual market data are a) empirical demand functions. b) never estimated using consumer interviews. c) generally estimated using regression analysis. d) both a and c e) all of the above
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Demand equations derived from actual market data are
a) empirical demand functions.
b) never estimated using consumer interviews. c) generally estimated using regression analysis. d) both a and c
e) all of the above
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- The table to the right contains price-demand and total cost data for the production of projectors, where p is the wholesale price (in dollars) of a projector for an annual demand of x projectors and C is the total cost (in dollars) of producing x projectors. Answer the following questions (A) - (D). (A) Find a quadratic regression equation for the price-demand data, using x as the independent variable. X 270 360 520 780 The fixed costs are $. (Round to the nearest dollar as needed.) ITTI y = (Type an expression using x as the variable. Use integers or decimals for any numbers in the expression. Round to two decimal places as needed.) Use the linear regression equation found in the previous step to estimate the fixed costs and variable costs per projector. The variable costs are $ per projector. (Round to the nearest dollar as needed.) (C) Find the break even points. The break even points are (Type ordered pairs. Use a comma to separate answers as needed. Round to the nearest integer as…Suppose you are the manager of a firm that produces good X in Ghana In order to make informed decision, you engaged an economist to estimate the demand equation for your product. Using data from 30 supermarkets around the country for the month of April, 2021, the estimated linear regression result for your product is shown in the table below: Variable Parameter Estimates Standard error Constant -164.0 20.24 Price of good X (P) Price of good Y (P,) -3.50 1.55 2.50 0.28 Per capita Income () 0.45 0.52 R-squared Adjusted R-squared 0.8672 0.8132 F-statistic 15.6893 a) Suppose the average price of 3 units of good X is GH¢12, price of 2 units of goodY is GH¢60, the per capita income of Ghana is GH¢420. Write down the estimated demand equation for your firm's product and interpret 1. the parameter estimates. Determine the quantity of good X sold. Estimate the own price elasticity of demand and state the type of demand curve 1. 11 your firm has? What would be the effect of a price increase on…Suppose you are the manager of a firm that produces good X in Ghana. In order to make informed decision, you engaged an economist to estimate the demand equation for your product. Using data from 30 supermarkets around the country for the month of April, 2021, the estimated linear regression result for your product is shown in the table below: Variable Parameter Estimates Standard error Constant -164.0 20.24 Price of good X (P,) Price of good Y (P,) -3.50 1.55 2.50 0.28 Per capita Income (/) 0.45 0.52 R-squared 0.8672 Adjusted R-squared 0.8132 F-statistic 15.6893 a) Suppose the average price of 3 units of good X is GH¢12, price of 2 units of goodY is GH¢60, the per capita income of Ghana is GH¢420. 1. Write down the estimated demand equation for your firm's product and interpret the parameter estimates. Determine the quantity of good X sold. Estimate the own price elasticity of demand and state the type of demand curve 11. 111. your firm has?
- The most frequently used method for estimating demand functions is: market experiments. consumer interviews. regression analysis. O O focus groups. casual introspection.Hello, I am trying to find the equations on my calculator for the price-demand and price supply equations. The data is in the attached image. I think I am doing something wrong, but not sure what. I found the quadratic regression model for the first set of data using my calculator, but I used the p=D(x) as list one, and x, as list two. I came up with 0.028x^2-23x +5743 is this right? or do I need the reverse the order? For the price-supply data I but the p=S(x) as list 1 and x as list 2 and I got the linear regression function: 2 5.1x+342 Can you please let me know if I am on the right track?Other Companies (Part 2) You directed your research department to do some research on the demand for Tesla sedans. They selected BMW i3 Sedans and Chevy Bolts as comparative offerings. Using regression analysis, the research department comes up the following estimate for yearly demand. Qx = -40,000 -1*Px +0.02*M +2*PB +2*PC Where: Px = $70,000, M = $150,000, PB = $65,000, PC = $40,000 a. Is the own price elasticity of demand for Tesla sedans at the point defined above elastic or inelastic? If Mr. Musk decides to raise his prices, what will happen to his revenue. b. PB and PC represent the price for i3 sedans and Bolt sedans respectively. Are these items compliments or substitutes when compared to Teslas? Give evidence to support your answer. c. Is the demand for Tesla sedans elastic or inelastic to price changes of BMW i3 and Bolt at the price points given in the problem? Interpret the result you find and explain what it means.
- Agnes, a General Manager in XXX Company, estimated a multiplicative demand function of the form: using a cross-section data collected in the company sales on 30th June, 2019. The estimation results are as follows: Constant Price(P) Income (I) Price of other Good (Po) Estimated coefficient 0.022 -0.223 1.354 0.133 Standard Error 0.012 0.056 0.502 0.814 t-statistic (1.19) (-3.98) -2.69 -0.13 Number of Observations, n=210; R-squared= 0.7516 Critical Students t=1.96 at 5% Level of Significance Write down the estimated demand equation Interpret the coefficients and value Describe any three managerial decisions that can be applied by the manager from the estimated demand function1. An analyst from your firm used a linear demand specification to estimate the demand for its product and sent you a hard copy of the results: SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Regression Residual Total Intercept Price of X Income 0.38 0.14 0.13 20.77 150 df 2 147 149 SS 58.87 -1.64 1.11 10398.87 63408.62 73807.49 Coefficients Standard Error 15.33 0.85 0.24 MS 5199.43 431.35 t Stat 3.84 -1.93 4.63 F 12.05 P-value 0.00 0.06 0.00 Significance F 0 Lower 95% 28.59 -3.31 0.63 Upper 95% b. Which regression coefficients are statistically significant at the 5 percent level? a. Based on these estimates, write an equation that summarizes the demand for the firm's product. 89.15 0.04 1.56 C. When price is $10, what is the income elasticity for this product for an income level of 35?You are the manager of a firm that produces a vegetable cooking oil in Ghana. In order to make informed decision, you engaged an economist to estimate the demand equation for your product. Using data from 25 supermarkets around the country for the month of February, 2021, the estimated linear regression result for your product is shown in the table below: Variable Constant Parameter Estimates Standard error -164.0 20.24 Price of vegetable cooking oil (P,) Price of palm oil (P,) Per capita Income () -3.50 1.55 2,50 0.28 0.45 0.52 R-squared 0.8672 Adjusted R-squared 0.8132 F-statistic 15.6893 a) Suppose the average price of 3 gallons of vegetable cooking oil is GH¢12, price of 2 gallons of palm oil is GH¢60, the per capita income of Ghana is GH¢420. i. Write down the estimated demand equation for your firm's product and interpret the parameter estimates. ii. Detemine the quantity of vegetable cooking oil sold. Estimate the own price elasticity of demand and state the type of demand curve…
- General Cereals is using a regression model to estimate the demand for Tweetie Sweeties, a whistle-shaped, sugar-coated breakfast cereal for children. The following (multiplicative exponential) demand function is being used: QD = 6,280 P(-2.15) A1.75N2.70 where QD = quantity demanded, in 10-oz boxes P = price per box, in dollars A = advertising expenditures on daytime television, in dollars N = proportion of the population under 12 years old, in percent What is the point price elasticity of demand for Tweetie Sweeties? 1.75 -1.23 2.70 -2.15 What is the advertising elasticity of demand? 0.65 1.75 -2.15 2.70 According to the estimated model, a percent increase in the proportion of the population under 12 years old by percent. the quantity demandedA student prepared the following spreadsheet model to calculate the final price of clothing items which are sold at a discount. To be complete, the student included a calculation of sales tax in the final price, given the original price (180), discount (0.2), and sales tax rate (0.09) shown below. A B 1 2 Original Price 180 3 Discount(%) 0.2 4 Discount ($) = B2 × B3 5 Net Price = B2 − B4 6 Sales Tax(%) 0.09 7 Sales Tax($) = ROUND(B5 × B6,2) 8 Final Price = ROUND(B5 + B7,2) Determine what values the spreadsheet should display. (Round your answer to 2 decimal places.)Question 9 Regression analysis was applied between demand for a product (Y) and the price of the product (X), and the following estimated regression equation was obtained. Y = 120 - 15 X Based on the above estimated regression equation, if price is increased by 2 units, then demand is expected to: O Increase by 120 units Decease by 30 units O Increase by 2Q units Next « Previous Submi No new data to save. Last checked at 9:51pm