An estimate of the demand function for household furniture

Reference no: EM13480706

An estimate of the demand function for household furniture produced the folloing results: F= 0.0036Y1.08RR0.16p-0.48 r(2)=0.996 where F= furniture expenditures per household Y = disposible personal income per household R = value of private residential construction per household P = ratio of the furniture price index to the consumer price index a. determine the point price and income elasticities for household furniture. b. what interpretation would you give to the exponent for R? Why do you suppose R was included in the equation as a variable? c. If you were a supplier to the furniture manufacturer, would you have preferred to see the analysis performed in physical sales units rather than dollars of revenue? How would this change alter the interpretation of the price coefficient, presently estimated as -0.48?

Reference no: EM13480706

Questions Cloud

The financial statements of the hershey company appear in : the financial statements of the hershey company appear in appendix b following the financial statements for tootsie

The company has a 10 rate of return d an annual receipt of : a single cash inflow of 12000 in five years discounted at a 12 rate of return. b. an annual receipt of 16000 over the

On march 4 2013 hein corporation issues 1000 shares of 100 : on march 4 2013 hein corporation issues 1000 shares of 100 par preferred stock for 125 per share. the stock is not

To acquire land and building the company paid 83600 cash : spitfire company was incorporated on january 2 2015 but was unable to begin manufacturing activities until july 1 2015

An estimate of the demand function for household furniture : an estimate of the demand function for household furniture produced the folloing results f 0.0036y1.08rr0.16p-0.48

Wrr corporation just paid a dividend of 150 per share d0 : warr corporation just paid a dividend of 1.50 per share d0 1.50. is projected to increase 5 annually over the next 3

What are auditing procedures what are some basic objectives : what are auditing procedures? what are some basic objectives of a financial statement

A company is trying to decide which of two new product : a company is trying to decide which of two new product lines to introduce in the coming year. the company requires a 12

The following information concerns production in the baking : the following information concerns production in the baking department for may. all direct materials are placed in

User Account

All Pages