1. Given the following hypothetical data, Answer the following questions. OBS 1 3. 4 7. 8 10 11 13 14 10 15 9. 16 35 14 80 9. 8. 6. 7. 30 40 Y 80 100 100 110 120 10 90 200 100 45 75 100 45 45 Y = a +BX+ ei Where OBS.. Numbers of observation. X....consumers income. Y. Quantity demand for a given product 2..... Then compute: A. Parameters and their Economic interpretation B. Estimate the quantity demand for the product in year 2020 if the average consumer's income is assumed to be $10,000. C. Depending on the estimated quantity demand obtained, what would be the minimum cost %3D of production if the production function is Biven as Q = 0.5L02K° 75 and the minimum cost function is given as C = 10L+20K. 25
1. Given the following hypothetical data, Answer the following questions. OBS 1 3. 4 7. 8 10 11 13 14 10 15 9. 16 35 14 80 9. 8. 6. 7. 30 40 Y 80 100 100 110 120 10 90 200 100 45 75 100 45 45 Y = a +BX+ ei Where OBS.. Numbers of observation. X....consumers income. Y. Quantity demand for a given product 2..... Then compute: A. Parameters and their Economic interpretation B. Estimate the quantity demand for the product in year 2020 if the average consumer's income is assumed to be $10,000. C. Depending on the estimated quantity demand obtained, what would be the minimum cost %3D of production if the production function is Biven as Q = 0.5L02K° 75 and the minimum cost function is given as C = 10L+20K. 25
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:1. Given the following hypothetical data, Answer the following questions.
OBS 1
4.
6.
7.
8.
10
11
12
13
14
10
15
6.
16
35
14
80
8.
6.
7.
30
40
Y
80
100
100
110
120
10
200
100
45
75
100 45
45
Y = a + BX+ ei
Where OBS.. Numbers of observation.
X....consumers income.
Y
Quantity demand for a given product
......
Then compute:
A. Parameters and their Economic interpretation
B. Estimate the quantity demand for the product year 2020 if the average consumer's
in
income is assumed to be $10,000.
C. Depending on the estimated quantity delnmand obtained, what would be the minimum cost
0.250.75
function is given as C = 10L + 20K.
25
61
91
90
3.
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