What is the expected change in the quantity demanded

Reference no: EM13233069

Assume your research staff used regression analysis to estimate the industry demand curve 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: EM13233069

Questions Cloud

Describe the vaccination process : A booster shot is another dose of the original vaccine given some time after the original dose wasad ministered

Explain highly sensitive to oxidation by molecular oxygen : Copper is highly sensitive to oxidation by molecular oxygen. Higher oxidation states of Cu do not catalyze diazocoupling reactions. Define oxidation (loss of electrons) and define a redox half reaction for the oxidation of CuI by O2

Provide injective function from to and explain why injective : Provide an injective function from ? to ? and explain why it's injective

Explain the most likely effect of temperature : Describe the most likely effect of temperature, catalyst loading, and concentration on the rate of a diazo coupling reaction.

What is the expected change in the quantity demanded : 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.

Explain aqueous ions the silver ion concentration is found : An excess sample of solid Ag2SO3 is added to 100 mL of water. After equilibrium is achieved between the solid and its aqueous ions the silver ion concentration is found to be 2.486e-05 Use this information to find Ksp for Ag2SO3

Explain the simulation : Predict what may occur and why to the sequencing process ifthe concentration of ddNTP's is higher than 1% or lower than1%

What is the copy constructor for a weighted digraph in c++ : What is the copy constructor for a weighted digraph in c++?

Determine what is the national saving : A country has domestic investment of $100 billion. Its citizens purchase $500 of foreign assets and foreign citizens purchase $300 of its assets. What is national saving

User Account

All Pages