4.7 An estimate of the demand function for household furniture produced the following results: F=0.0036 Y1.35R0.19P(−0.37) 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 The point price elasticity for household furniture is -0.37 or -1.95 or 1.35 or 7.11 and the income elasticity is -0.37 or -1.95 or 1.35 or 7.11 . According to the estimated model, a 10 percent increase in the value of private residential construction per household Increase or decrease the quantity demanded by 1.4 or 1.9 or 5.1 percent.
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4.7 An estimate of the demand function for household furniture produced the following results:
F=0.0036 Y1.35R0.19P(−0.37) 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
The point price elasticity for household furniture is -0.37 or -1.95 or 1.35 or 7.11 and the income elasticity is -0.37 or -1.95 or 1.35 or 7.11 .
According to the estimated model, a 10 percent increase in the value of private residential construction per household Increase or decrease the quantity demanded by 1.4 or 1.9 or 5.1 percent.
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