Form the given information about Cobweb Model, determine the market price, equilibrium price, and stability of the time path: Q = 220-0.5P, , Q = -25 + 0.4P and P, = 250 st Answer:
Q: e) 1) Given the following Y = C +I C = 25 + 0.080yd I = 55 G = 40 T = 10 + 0.10Y Find Y,C, and T.
A: Given : Y=C+I C = 25+ 0.080yd I = 55 G = 40 T= 10+ 0.10Y
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- Suppose the input combination currently used by a producer is such that the TRS is equal (in absolute value) to the ratio of the input prices. Then, we can conclude that the producer is maximizing her profits. Group of answer choices True FalseConsider the following Cobb-Douglas production function for the bus transportation system in a particular city: Q=aL B₁F B₂K B₂ where L = labor input in worker hours, F = fuel input in gallons, K = capital input in number of buses, and Q = output measured in millions of bus miles. Suppose that the parameters (a, B₁, B2, and B3) of this model were estimated using annual data for the past 25 years. The following results were obtained: a = 0.0012; B₁ = 0.45; B₂ = 0.20; and B3 = 0.30. Determine the labor, fuel, and capital input production elasticities. Input Production Elasticities Labor Fuel Capital Suppose that labor input (worker hours) is increased by 1% next year (with the other inputs held constant). What is the approximate percentage change in output? Suppose that capital input (number of buses) is decreased by 3% next year (when certain older buses are taken out of service). Assuming that the other inputs are held constant, what is the approximate percentage change in output? %…Assume the industrial conditions of red pepper production in the market for homogeneous products there are many manufacturers where each manufacturer has a market share (market share) the same, relatively small and can not affect the price of the change strategies carried out by these manufacturers in the market. If it is known that the function the demand is Q = 2000-P, and the total cost of each manufacturer is the same that is, TCi = 100 + 5q2i. Where Q = [2]I qi, where i is the producer of i and i is 1, 2, 3,..., n. Questions: - What is the number of companies in the long term of the competitive marketi perfect for this homogeneous product, where every company has the same market share? - What is the selling price of thi product in market? - Calculate the Herfindahl-Hirschman Index (HHI) of the red pepper producer industry here!
- The following question refers to this regression equation (standard errors for each of the estimated coefficients are in parenthesis). Q=8,400-8" P+5" A+ 4** Px +0.05**1, (1,732) (2.29) (1.36) (1.75) (0.15) Q = Quantity demanded P = Price 1,100 Advertising expenditures, in thousands = 20 P = price of competitor's good = 600/= average monthly income 10,000 What is the advertising elasticity of demand? Round your answer to two decimal places. Your Answer: The t-statistic is computed by dividing the regression coefficient by the standard error of the coefficient. dividing the regression coefficient by the standard error of the estimate. dividing the standard error of the coefficient by the regression coefficient. dividing the R2 by the F-statistic. none of the specified answers are correct.1) Production function for agricultural sector of a country is specified as the following, log Y=B1 + B2 log K+ ß3 log L+u. where Y represents wheat output, K capital stock and L employment (labor). The model is estimated using annual data over 1980-2020 (n=41) periods. The results are reported below. p-values are given in squared parentheses. loĝ Y = 4.17 +0.67 log K+ 0.35 log L p-value [0.015] [0.18] R² = 0.81 1.a) Test if each slope coefficient is significant individually (one by one) using the p-values in parentheses and interpret the results. (Styles 6. The following two regression models are Probit and Logit respectively: Pr(Y=1|X)=(Bo+Bi xXr+Bzx X2) Pr(Y=1|X)=F(Bu + B₁ × Xs + B₂ × X2) (a) what functions do and F represent? (b) How do Probit, and Logit ensure that the predicted probabilities are always between 0 and 1? (c) Sketch a graph of the Y= $(Z) function. (Z on the horizontal axis, Y on the vertical axis) (d) What estimation method is used to estimate the coefficients in a Probit/Logit model? (e) What are the two measures of fit for models with binary dependent variables? Focus 88 B E
- M7Using the annual data for the period of 2000 and 2010, Prof Omanya applied a Cobb -Douglas production function to estimate the production for the Kenya's manufacturing sector using firms listed on Nairobi Securities Exchange. His results were given as: Q= K0.45 L0.55 Where Q = units of output; L = units of Labor; and K = units of capital What are the marginal products of Labor and Capital? Calculate the factor intensity and explain the technique of production that is being used by Prof Omanya How would you characterize the Kenya's manufacturing sector in terms of returns to scale? What are the main three causes of such returns to scale?Consider the following Cobb-Douglas production function for the bus transportation system in a city: Q = Lβ1Fβ2Bβ3 Where L = labour input in worker hours F = fuel input in gallons B = capital input in number of buses Q = output measured in millions of bus miles Suppose that the parameters (α, β1, β2 and β3) of this model were estimated using annual data for the past 25 years. The following results were obtained: β1 = 0.45, β2 = 0.20 and β3 = 0.30 a. Determine the (i) labour, (ii) fuel, and (iii) capital-input production elasticities
- 2.9. Based on price statistics of 26 properties sold (Y USD/m? ) linear correlation coefficients were calculated with potential explanatory variables X,,X2,X3, X4 . Vector R, and matrix R are listed below 0,3 0,6 0,5 1 Ro= R = -0,7 0,6 0,6 1 0,4 0,8 0,8 0,7 1] The critical value of the linear correlation coefficient was assumed to be r* =0, 55. Perform the selection of explanatory variables for the model using the correlation coefficient analysis method.Provide your opinion on interpreting coefficients in nonlinear specifications?(a) Interpret the elasticity of cigarette consumption with respect to prices. (b) Does this regression model return the expected sign for this relationship? Explain. (c) Is the independent variable's coefficient statistically significant at a = 0.05? Explain. (d) As you have noticed, both the dependent and independent variables are defined in logs. Does this fact violate the linearity portion of CLRM Assumption I? Explain your answer. (e) A Shapiro-Wilk test on this model's residuals returns a p-value of 0.5329. Given this fact, is CLRM Assumption VII satisfied? Explain.