An estimate of the demand function for household furniture produced the following results: F = 0.0036 Y1.08 R0.16 p(-0.48) where Ffurniture 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 r² = 0.996 The point price elasticity for household furniture is , and the income elasticity is According to the estimated model, a 10 percent increase in the value of private residential construction per household the quantity

An estimate of the demand function for household furniture produced the following results: F = 0.0036 Y1.08 R0.16 p(-0.48) where Ffurniture 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 r² = 0.996 The point price elasticity for household furniture is , and the income elasticity is According to the estimated model, a 10 percent increase in the value of private residential construction per household the quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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