In order to estimate a meat demand function, 2000 households were surveyed, and the following results were obtained: Qm=5+1.2Lnl-0.65LnPm+0.3LnPf-0.1POP2- 0.15POP3 Where Qm is the demanded quantity of meat, I is the income, Pm is the price of meat, Pf is the price of Fish, POP3 is the pseudo variable of residential area for those who live in Athens, POP2 is the pseudo variable of the residential area for those that live in Thessaloniki and POP1 is the pseudo variable for those that live in areas outside of Athens/Thessaloniki. 1.what are the interpretations of the coefficients (note that some variables are in logarithmic form)? 2.how would you test the hypothesis that the income elasticity is equal to 1 (that is, if income changes by 1%, the quantity demanded will change by 1% 3.Why the pseudo variable POP1 has not been accounted for in the function ? 4.How would you check the hypothesis that the area of residence does not affect the consumption of meat? 5.From consumer theory we know that if the prices and the income increase by the same percentage the demanded quantity does not change. Please describe analytically how would you check this hypothesis.

In order to estimate a meat demand function, 2000 households were surveyed, and the following results were obtained: Qm=5+1.2Lnl-0.65LnPm+0.3LnPf-0.1POP2- 0.15POP3 Where Qm is the demanded quantity of meat, I is the income, Pm is the price of meat, Pf is the price of Fish, POP3 is the pseudo variable of residential area for those who live in Athens, POP2 is the pseudo variable of the residential area for those that live in Thessaloniki and POP1 is the pseudo variable for those that live in areas outside of Athens/Thessaloniki. 1.what are the interpretations of the coefficients (note that some variables are in logarithmic form)? 2.how would you test the hypothesis that the income elasticity is equal to 1 (that is, if income changes by 1%, the quantity demanded will change by 1% 3.Why the pseudo variable POP1 has not been accounted for in the function ? 4.How would you check the hypothesis that the area of residence does not affect the consumption of meat? 5.From consumer theory we know that if the prices and the income increase by the same percentage the demanded quantity does not change. Please describe analytically how would you check this hypothesis.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

You can earn 10% a year on your savings. Your dad offers you a Holiday Gift of $1000 this year, $2000 next Holiday, $3000 Holiday 2021. If instead he offered you $6,000 Holiday 2020 (next year). Which should you pick, the single payment or the 3 payments. SHOW YOUR WORK Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
You are in the market to buy a used car. Your monthly budget allows for a $300 per month car payment and you want to finance for 4 years. The current APR for a used car is 3%. a) Calculate the amount of loan you can afford. b) Complete the table below. Year 0 After 1 month After 2 months After 6 months After 1 year Loan Balance Interest Paid
past b please
Ed opened a savings account 5 years ago with $600. The account earns 3% simple interest per year, and Ed has not added or withdrawn from the account. How much interest has Ed earned?
Jim Duggan made an investment of $10,000 in a savings account 10 years ago. This account paid interest of 5 1/2% for the first 4 years and 6 1/2% interest for the remaining 6 years. The interest charges were compounded quarterly. How much is this investment worth now?
Please see attachment and type out step by step the correct answer within 40 minutes , n give explanation of each option given below . Will give thumbs up only for the correct answer. Thank you
can you do part b, c, d and e i can hse 4 questions for it