Answer all the parts otherwise skip.... a. Discuss whether you think these regressionresults will generate good sales estimates forB.U. LLC, rap. Now assume that the income is$35,000, the price of the related good is $17,and B.U. chooses to set the price of its productat $15.b. What is the estimated number of units soldgiven the data above? (round to nearest unit; nodecimals)c. What are the values for the own-price,income, and cross-price elasticities?d. If P increases by 4%, what would happen (inpercentage terms) to quantity demanded?e. If M increases by 3%, what would happen (inpercentage terms) to quantity demanded?f. If R decreases by 5%, what would happen (inpercentage terms) to quantity demanded? Bob'd Underground, limited liability corporationspecializing in new rap artists (B.U.LLC,rap) hasthe following demand function:= a + bp + CM +dRwhere is the quantity demanded of the mostpopular product B.U. sells, P is the price of thatproduct, M is income, and R is the price of arelated product. The regression results are:Adjusted RSquareIndependentVariablesInterceptPMR0.7711Coefficients-25.995-4.5820.00633.09StandardError69.3061.4630.0021.219t Stat P-value-0.375 0.71008-3.133 0.003693.948 0.000402.531 0.01648

Answered: Image /qna-images/answer/08934dde-afa0-42d4-8cb8-4ac297c3a5d1.jpg

a. Discuss whether you think these regression results will generate good sales estimates for B.U. LLC, rap. Now assume that the income is $35,000, the price of the related good is $17, and B.U. chooses to set the price of its product at $15. b. What is the estimated number of units sold given the data above? (round to nearest unit; no decimals) c. What are the values for the own-price, income, and cross-price elasticities?

a. Discuss whether you think these regression results will generate good sales estimates for B.U. LLC, rap. Now assume that the income is $35,000, the price of the related good is $17, and B.U. chooses to set the price of its product at $15. b. What is the estimated number of units sold given the data above? (round to nearest unit; no decimals) c. What are the values for the own-price, income, and cross-price elasticities?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please provide answer in 1 hr please urgent
If the transit time is 11 days and the annual demand for an item is 10,000 units, whatis the average annual inventory in transit?
True/false Variable cost changes or vary with the change in the level of output in a production process.
Calculate profits if total revenue is $6500 and the total cost is $2300
Mc Donald's sells 1500 burgers per year. The cost to place an order for raw materials is RO 40. The cost of one burger is RO 0.600 and the carrying cost is 20% of the cost. Find the Economic Order Quantity. a. 1000 units b. 2000 units 1500 units Od. 800 units
Show complete steps
2
A heavy equipment manufacturing company has produced its first unit using 3500 hours and $300,000 overhead cost. The next unit, i.e. the second unit took 3300 hours. Overhead cost for this unit was $200,000. Suppose the labor was $20 per hour. Being the production manager, you need to decide what would be the total production costs for additional 10 units after the completion of the second unit. Round the final amount to nearest integer. $1,597,832 C$1,003,183 (DNone of the above
A blant broduces dayof A 15000gallons per r chemical cost partiçular 2.5millions in 31987.when the Cost index was. 1674. The Cost now for louilding. that produces "40,000 gallous per day with fexponent) of08 Milligns. Similar plant cost capacity factor 5 Millions. what's the st indexi now. र
180.00 Short Run Cost Curves Numerical Data Labels Are Adjacent ToTheir Associated Markers (Markers Are The Squares, Dots, or Triangles On The Curves) MC AVC ATC 162.60 160.00 140.00 130.20 120.00 101 40 100.00 92,56 90.60 80.00 85.80 84.92 80.91 80.60 77.74 76,20 16.20 77,68 60.00 61.80 54.60 54.60 48.60 40.00 43.80 40.20 40.20 37,80 36.60 36.60 37.80 2.20 20.00 1.40 0.00 13 15 16 17 18 19 20 21 10 11 12 14 Quantity The figure shows a competitive firm in the paper clip industry. The price of a paper clip is $130.20. The firm's profit is O• $548.20 O • $751.05 O• $892,80 O • $1,096.24 180.00 Short Run Cost Curves Numerical Data Labels Are Adjacent ToTheir Associated Markers (Markers Are The Squares, Dots, or Triangles On The Curves) 160.00 162.60 MC AVC -ATC 140.00 130.20 120.00 100.00 101.40 92.56 80.00 RS 80 90.60 s0.91 84.92 16,20 80.60 774 76.20 77.68 60.00 54.60 61.80 54.60 40.00 48.60 40.20 43.80 37.80 40.20 36.60 20 36.60 20.00 140 0.00 10 11 12 13 14 15 16 17 18 19 20 21…
Jenkins Ltd manufactures remote control cars which sells for $500 each. The fixed cost is $70000 and the variable cost per unit is $300. Jenkins sold 200 units of car. Find the total cost and total revenue for Jenkins Ltd.
If explicit cost are $4400 and the accounting profit is $6000 Calculate the value of total revenue