What is the expected change in the quantity demanded

Assignment Help Econometrics
Reference no: EM13203327

for Product X.
Qx = 10,000 - 100 Px + 0.5 Y - 1000 r
(3,000) (20) (0.3) (105)

Where Qx is the quantity demanded of Product X, Px is the price of X, Y is income, and r is the prime interest rate (given in decimals, e.g., 0.02 or 0.05) The standard error of each estimated coefficient is given in parentheses below it.

Also, the following information is provided about the regression equation.
Number of observations = 98
R2 = 0.95
F-statistic = 7.5

If prices remain constant next year but income is expected to increase by 50 and interest rates rise by two percentage points (by 0.02), what is the expected change in the quantity demanded?

Reference no: EM13203327

Questions Cloud

Which it believes will have zero salvage value at the end : The Acme chemical company paid $45000 for research equipment, which it believes will have zero salvage value at the end of its 5 year life. If the straight line (SL) method is used, what will be its value after 2 years
Re-write the expression in terms of the first power of : Rewrite the expression in terms of the first power of the cosine. Use a graphing utility to graph both expressions to verify that both forms
Find the exact solutions of the equation in the interval : find the exact solutions of the equation in the interval [0, 2π).
Find the dimensions that minimize cost : If you are fencing in an 800 sq ft rectangular garden and one side cost $6 per foot and the other 3 cost $2 per foot, find the dimensions that minimize cost.
What is the expected change in the quantity demanded : for Product X. Qx = 10,000 - 100 Px + 0.5 Y - 1000 r (3,000) (20) (0.3) (105) Where Qx is the quantity demanded of Product X, Px is the price of X, Y is income, and r is the prime interest rate (given in decimals, e.g., 0.02 or 0.05) The standard ..
What about the second equation : What about the second equation? How are these examples similar? How are they different? Find a problem in the text that is similar to examples 2, 3, and 4. Post the problems for your classmates to solve.
What are the possible values for the first of the two number : The second number is 5 less than the first. What are the possible values for the first of the two numbers? In your answer, denote the first number by X
What was the speed on each part of the trip : During the first part of a trip, a canoeist travels 91 miles at a certain speed. The canoeist travels 14 miles on the second part of the trip at a speed 5mph slower. The total time for the trip is 4 hrs. What was the speed on each part of the trip..
What is the diameter of the semicircle : Suppose that 166 ft of fencing are used to enclose a corral in the shape of a rectangle with a semicircle whose diameter is a side of the rectangle. What is the diameter of the semicircle and the side of the rectangle?

Reviews

Write a Review

Econometrics Questions & Answers

  What were the profits attributable

Joe Holiday operated a business renting beach umbrellas this past summer. He operated the concession for 3 months. Joe knew that rain was frequent along this stretch of beach, but he was luck and enjoyed 60 rentable days this season. On each renta..

  Find e(z) and var(z)

Find E(Z) (1 dp) 2. Assuming that X and Y are statistically independent find var(Z) (1 dp) 3. Assuming that cov(X,Y) = 2 find var(Z) (1dp)

  What is the monthly rate of interest

You have your eyes on a new automobile costing $25,000. You finance $20,000 at 15%/yr/monthover a 5 year period.The loaner then proceeds to add on a 1.25% loan initiation fee of 250$. There is a prepaid loan closeout fee of 250$.

  Effects of an efficient economy

When a recession is over, do people start to immediately feel affects of an efficient economy? Use the experience of most recent recession to justify your answer.

  What is minimum number of units that would have to be paint

A painting operation is performed by production worker at a labor cost of $1.40 per unit. A robot spray-painting machine, costing $15,000, would reduce the labor cost to $0.20 per unit. If the device would be valueless at the end of 3 years.

  What is the opportunity cost of spending the 100 dollar

You win $100 in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 5 percent interest. What is the opportunity cost of spending the $100 now

  Calculating number of units produced by firm

Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.

  Determine is there a movement along the demand curve

Going back to the demand curve in part (a), suppose the current market price for an orange is $5, what happens to the demand curve for oranges if the price goes to $7 per orange That is, does the demand curve shift or is there a movement along the..

  What kind of returns-to-scale does the firm experience

After a careful study, a firm has estimated its production function as follows: ln Q = 0.375 ln K + 0.625 ln L, where Q = units of output, K = units of fixed factors and L = units of variable factors. What kind of returns-to-scale does the firm e..

  What is the current macroeconomic situation in the us

What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.) What fiscal policies and monetary policies would be appropriate at this time Can I please have ..

  Analyze whether the investment is desirable or not

For depreciation purpose a 700 salvage value at the end of 6 years is assumed. But the actual value is thought to be 1000 and it is the sum that is shown in the before tax cash flow. Year: 0, 1, 2,3,4,5,6

  How the fed manipulates the federal funds rate

Reserve requirement for banks is set at 5%. Your firm withdraws $42,000 on its line of credit at the Security Bank to purchase equipment for expansion. The equipment vendor deposits the amount that he receives from you at his bank, The Highland Ba..

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!

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