What interpretation would you provide to exponent for r why

Reference no: EM13454912

An estimate of the demand function for household furniture produced the following results: F=0.0036Y (1.08 exponent)R(0.16 exponent) P -0.48 (exponent) 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 elasticities for household furniture.

What interpretation would you give to the exponent for R? Why do you suppose R was included in the equation as a variable?

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 woul dthis change alter the interpretation of the price coeeficient presently estimated as .0.48?

Reference no: EM13454912

Questions Cloud

Analyze the significance of jaws in fishes as it related to : question 1 what is a likely scenario for how the first plants arrived on land and were able to survive there?question 2

Explain how the company uses its human resource management : select a publicly traded company by searching the internet. download the annual report for the most recent year

Choose a topic that you have a passion to engage with for : write a social movementsocialchange paper addressing a current topic of your choosing. choose a topic that you have a

Explain how the science of clasdistics is employed to : q1. describe how the science of clasdistics is used to produce cladograms.q2. what is plate tectonics and how does it

What interpretation would you provide to exponent for r why : an estimate of the demand function for household furniture produced the following results f0.0036y 1.08 exponentr0.16

We have been grappling with things related to the roman : we have been grappling with things related to the roman empire ever since the 3rd week of our course. nbspdrawing

Examine the fundamentals of pki and estimate the primary : suppose youre the information security director at a small software company. the organization currently utilizes a

Write a social movementsocialchange paper addressing a : write a social movementsocialchange paper addressing a current topic of your choosing. choose a topic that you have a

In his work jared diamond draws very careful links between : in his work jared diamond draws very careful links between cultural development and big geographical factors.

User Account

All Pages