User Account

All Pages

Determine point price and income elasticity for furniture

Assignment Help Business Economics
Reference no: EM13149576

An estimate of the demand function for household furniture produced the following results: F = 0.0036Y1.08 R0.16 P-0.48 r2 = 0.996 Where F = furniture expenditures per household Y = disposable 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 elasticity’s 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 -0.48

Reference no: EM13149576

Questions Cloud

Cost to consumers and businesses : The best use of scarce resources paid for at the minimum level of cost to consumers and businesses
Standard deduction for regular tax purposes : Jerusha is married and she files a separate tax return in 2010. She claims two exemptions (2 x 3,650 = $7,300). She claimed the standard deduction for regular tax purposes ($5,700). She had no other adjustments. Her regular taxable income was $68,..
What value would you predict for s : what value would you predict for S? b. What happens if P is reduced to $17,1500? c. How would you go about developing a value for k? d. What are the potential weaknesses of this model?
Gold standard and quantitative easing : Give two reasons for (20 points) and two reasons against backing a currency with gold. Then develop your position either for or against backing the US currency with gold and substantiate your assertions.
Determine point price and income elasticity for furniture : Determine the point price and income elasticity’s for household furniture. b. What interpretation would you give to the exponent for R?
Production cost information : Consider the production cost information for Santiago's Salsa in Problem 1-1. The company is currently producing and selling 325,000 jars of salsa annually.The jars sell for $5.00 each. The company is considering lowering the price to $4.60. Suppo..
Commissions associated with negotiating lease : There is no provision for the renewal of the lease or purchase of the machine by the lessee at the expiration of the lease term. Hooke paid n$ 30000 of commissions associated with negotiating the lease in Feb 2011
Prepare a statement of comprehensive income : Prepare a statement of comprehensive income, using the two-income statement format. Ignore income taxes and earnings per share.
Discuss whether perfect competition is more efficient : Discuss whether perfect competition is more efficient than regular unregulated monopoly, regulated monopoly, and natural monopoly? Justify your answer using real world examples.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd