Consider an equilibrium of a single product market jointly determined by a supply function q* = a, + a, • p* + U and a demand function q* = Bo + B1 • p° + V, where q* indicates the equilibrium quantity and p* indicates the equilibrium price, then O A. we will run into the simultaneous equations problem, which will cause estimation inconsistency. O B. we can have bi-directional causality between q* and p*. O C. q* and p* will both be endogenous. O D. all of the above.

The demand for watches is given by p = 7000 − 2q dollars,and the supply of watches is given by p = 0.01q^2+ 2q + 1000 dollars,where q is the number of watches demanded and supplied when the price perwatch is p dollars. Based on the information provided, calculate the equilibriumquantity and the equilibrium price for watches.

7. Two analysts at a bank want to determine an appropriate credit limit for new customers with a given credit score using existing data on credit limit decisions. The first analyst studies customers with 'good' credit, and the second studies customers with 'excellent' credit. For the purpose of this exercise, suppose these are the only two categories. The analysts separately report the following fitted equations: 'Good' i 'Excellent' ŷi = = 1000 +0.5scorei. 1500 +0.7scoreį. a) Draw these fitted regression lines on the same diagram. b) Suppose 'Good' credit is scored between 0-400 and 'Excellent' credit 400-800. Add to your fitted equations a cloud of points you might reasonably expect to see. c) Explain how you could combine the information from both of these univariate regressions by running a single (multivariate) linear regression. Deduce from the information provided what the parameter estimates would be in your multivariate regression. What is the estimated size of the ‘jump'?…

A researcher wants to estimate the reserve demand equation i.e. growth rate of Forex reserves (percentage change in total reserves minus gold) held by the central bank of country A as function of growth rate of exchange rate (percentage change in exchange rate) and interest rate differential (difference in money market interest rate of Country A and the Fed Funds Rate) using monthly data from January 1994 to July 2021. Assuming that the researcher has found 3 breaks based on multiple breakpoint test. Formulate an econometric model to account for these breaks (you may decide to use your own break dates) using relevant variables and interpret the coefficient of this model.

A manufacturing process has a total cost function given by the equation C = 10 + 4x and a total revenue function given by the equation R = 22x - 4x2 where x is the quantity produced in ’00 units and C and R , are both N$’00. i. Using the cost equation, C = 10 + 4x, identify the value of the company’s fixedcosts (i.e. those that remain constant irrespective of the quantity produced) andvariable costs (i.e. those that vary according to production) for thismanufacturing process. ii. Construct a table to calculate the value of C and R using the values 0, 1, 2, 3, 4and 5 for x. iii. (Using the data from the table in (ii), plot a fully labelled graph for C and Ragainst x. Use the graph drawn in (iii) to determine:iv. The quantity of units produced where the manufacturing process breaks even(i.e. where neither a profit nor a loss is made). v. The range of x in which the manufacturing process makes a profit and the rangein which the manufacturing process makes a loss. vi. The profit or loss…

1. Supply and Demand Equation for certain product are3q −200p + 1800 = 0and3q + 100p −1800 = 0respectively, where p represents the price per unit in dollars and q represents thenumber of units sold per time period.a) Find the equilibrium price algebraically.b) Find the equilibrium price when a tax of 27 cents per unit is imposed on thesupplier. 2. a) Find the break - even points for company X, which sells all it produces, if thevariable cost per unit is $3, fixed costs are $2 and YTR= 5√q, where q is the numberof thousands of units of output produced.b) Graph the total revenue curve and the total cost curve in the same plane.c) Use your answer in (a) to report the quantity interval in which maximum profitoccurs.Show all steps to get full credit. Solve it Algebraically 3. At 27, Joanna Gretz sets up an IRA with Merrill Lynch where she plans to deposit$2000 at the end of each year until age 60. Find the amount of annuity if she investsin(a) A corporate bond fund, which has historically…

The demand function for a good is given by the equation P = a − bQ while the totalcost function is TC = dQ^2 + eQ + f, where a, b, d, e and f are positive constants.(a) Derive the equation for profit.(b) Derive an expression for the value of Q for which profit is maximized.

You work for the International Monetary Fund in Washington DC, mon- itoring Singapore's real consumption expenditures. Using a sample of quarterly real consumption data (measured in billions of 2005 Singapore dollars), yt, t 1990.1, ..., 2006.4, you estimate the linear consumption trend model, Yt = Bo+ B1TIME, + €1, where &, ~ iidN(0, o²), obtain- ing the estimates Bo = 0.51, B1 2.30, and ô² = 16. forecasts for 2010.1 Provide interval forecasts for 68% and 90% confidence levels. question

2) If demand is represented by the function p = f(q) and supply is represented by the function P = g(q) what is a common method to find equilibrium price (P) and equilibrium quantity (9)?

Q2. You are planning to control pollution from four manufacturing facilities those are discharging pollutants into a river. Each of these facilities are releasing 20 units of pollution, but you are planning to control half (40 units) of the aggregate 80 units of pollution. The marginal cost of controlling pollution from these four units are as follows: MC1 = $20, MC2 = $25, МСЗ %3D $30, МС4-$40 a. What will be the cost-effective allocation of pollution control among these four facilities? b. What will be the cost involved to control the target 40 units of pollution control? c. If each of the facility is directed to control half of their own pollution, what would be the cost of pollution control for the target 40 units? Will it be a cost effective option?