An economist working for Amazon wants to test how well the "99-cent pricing strategy" works. To do so, she analyzes thesales of products on the main page of Amazon to set up a difference-in-difference-style test. On the first day, all productprices are set at a flat price. On the second day, half of the products' prices are reduced by 1 cent so that prices end in ".99".You have the following data:Day Control group average sales (thousands of units) Treated group average sales (thousands of units)12001402190170What is the difference-in-differences estimate of the effect of 99-cent pricing?it decreased sales by 10 thousand unitsit decreased sales by 40 thousand unitsit increased sales by 40 thousand unitsit increased sales by 30 thousand unitsIncorrect Classify each statement as true or false.< O FeedbackAt least one of the statements isDiscrimination based on gender, race, or other factors widensclassified incorrectly. Pushing peopleFalseincome gaps by shifting labor supply curves.from job A into job B means feweravailable workers in category A andThere is an income 'risk premium' for risk-takers, but not allentrepreneurs receive it.more in B.TrueHaving wealthy parents can lead to advantages regarding income.TrueAnswer BankRequirements for cosmetology licenses, taxi medallions, and admissionto the bar for lawyers, all tend to increase wages in those occupations.FalseTrueFalseBecause the level of education a person pursues is a personal choice,economists do not emphasize it when analyzing income inequality.TrueEconomists generally do not consider artistic talent as a factor inincome inequality.FalseIncorrect

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An economist working for Amazon wants to test how well the "99-cent pricing strategy" works. To do so, she analyzes the sales of products on the main page of Amazon to set up a difference-in-difference-style test. On the first day, all product prices are set at a flat price. On the second day, half of the products' prices are reduced by 1 cent so that prices end in ".99". You have the following data: Day Control group average sales (thousands of units) Treated group average sales (thousands of units) 1 200 140 190 170 What is the difference-in-differences estimate of the effect of 99-cent pricing? it decreased sales by 10 thousand units it decreased sales by 40 thousand units it increased sales by 40 thousand units it increased sales by 30 thousand units O O 2.

An economist working for Amazon wants to test how well the "99-cent pricing strategy" works. To do so, she analyzes the sales of products on the main page of Amazon to set up a difference-in-difference-style test. On the first day, all product prices are set at a flat price. On the second day, half of the products' prices are reduced by 1 cent so that prices end in ".99". You have the following data: Day Control group average sales (thousands of units) Treated group average sales (thousands of units) 1 200 140 190 170 What is the difference-in-differences estimate of the effect of 99-cent pricing? it decreased sales by 10 thousand units it decreased sales by 40 thousand units it increased sales by 40 thousand units it increased sales by 30 thousand units O O 2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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