Consider the model in chapter 3. Suppose the consumption equation is represented by the following function: C=250 +0.5YD. I-50, G-T-100. Given the above information,, we know that equilibrium consumption is 0 0 0 0 С 600 450 800 550 650
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- Part C 3. The manager of a certain gasoline station wants to forecast the demand for the unleaded gasoline next month so that the proper number of gallons can be ordered from the distributor. The manager has accumulated the following data demand for unleaded gasoline from sales during the past eight months. Month Gasoline Demanded (gallons) Mar 900 Given that the forecast for March is 920. Apr 755 May 650 Jun 550 Jul 625 Aug 730 Sept 820 Oct 1 100 a. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.25. b. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.45. c. Plot the actual demand and the forecasts determined in part a and b on the same graph and compare them. d. Make a comparative analysis out of your answers in the plotted data. (3-5 sentences)Analysts say that the increase in gasoline prices comes a drop in SUV sales and trade-in values at dealerships.The U.S. Department of energy said that during the past week, U.S. gasoline topped $3 a gallon - the highest level since October 2008. According to Alec Gutierrez,lead analyst for vehicle evaluation at Kelley Blue Book, SUV sales have decreased about 1 percent since the last major gasoline price hike in spring 2008. He doesn't believe that SUV sales will decrease significantly unless prices reach $3.50 to $4 per gallon. if a gasoline price hike of 5 percent caused the SUV sales drop described, what is the cross-price elasticity of demand between gasoline and SUVs?== 2. Consider an IS/LM model of an economy with the following equations:C = 300+ 0.6Ydl 100 5iG 200TR = 200T 200T = 0.1YL = 0.4Y 30iM/P = 500(a) Using the above data, derive the equation for the IS schedule. (b) In this example, what is the equation for the LM schedule? (c) Using simultaneous equations calculate the equilibrium level of income and interestrates. Sketch the IS/LM equilibrium position. (d) What are the values of the monetary policy multipliers with respect to income andinterest rates? If the money supply is increased by 30, what are the new market clearing income and interest rate levels?
- Please find the effect of Y and r if there is a decrease in the tax rate. Use the following equations and evaluate the total derivative.5.20 explain.E-cigarette users considering quitting E-cig use may wind up taking several tries before successfully stopping: Now, assuming the typical graph for the MB and MC curve, what would happen if (which curve is shifting and as a result what happens to the optimal quantity of smoking?) 1) a new, highly effective smoking cessation aid became available? Describe what would happen in the graph 2) you get the exciting news that you will become a parent
- Suppose that Y=MX+b, where Y=consumption, b=consumption at zero income, M=slope, and X=income(i) Are Y and X positively related or are they negatively related?(ii) If graphed, would the curve for this equation slope upward or slope downward?(iii) Are the variables Y and X inversely related or directly related?(iv) What is the value of Y if b=10, M=.50, and X=200?(v) What is the value of X if Y=100, b=10, and M=.25?A food truck vendor averages 150 tacos sold when the price per taco is $4. A study shows that the average number of tacos sold will increase by 25 facos for every $1 that the price per taco is lowered. Which equation models the food truck's average sales in dollars, s, in terms of the price per taco, x ? A 325x + 250 3 = - 25x + 250 3 = 25x + 250x 3 = - 25x + 250x P Type here to search 315 P 1/28/20 Esc Delete CD & 2 8 Backspace Num Lock R T. Y P Home D K L Enter Z. B Shift End Alt Pgup Alt Ctrl Home PgDn End deapad S rivacy Shutter on Webcam DeliveryConsider the following model of house prices: lhprice=β0+β1bdrms+β2llotsize+β3lsqrft+u The variables are defined as: lhprice = the natural log of the house price bedrms = the number of bedrooms llotsize = the natural log of the land or lot size lsqrft = the natural log of the floor space of the house in square feet. You may assume the Gauss Markov Assumptions hold. Which of the following will make our inference on the partial effect of the number of bedrooms on the house price less precise? a) A smaller variance of any unobserved factors captured in the error term, u. b) A larger sample size. c) More variation in the number of bedrooms across the observations in the sample. d) None of the possible answers describe something that would make our inference less precise. e) A higher correlation between the number of bedrooms and the floor space of the house.
- 10....What do you understand by the term ‘autocorrelation’?4GE 10:01 ITEMS INFO 8. 2 attempts remaining. TAMU_QID: BM_00048 Consumers will demand 1070 items at a price of $2.75 per item. When the price per item increases to $5, the number of items demanded will decrease by 45. Write the linear demand function, p(x), for this item. Enter your answer in slope-intercept form, using exact numbers. p(x) = Submit answer
