Suppose you are the manager of a firm that produces good X in Ghana. In order to make informeddecision, you engaged an economist to estimate the demand equation for your product. Using datafrom 30 supermarkets around the country for the month of April, 2021, the estimated linearregression result for your product is shown in the table below:VariableParameter EstimatesStandard errorConstant-164.020.24Price of good X (P,)Price of good Y (P,)-3.501.552.500.28Per capita Income (/)0.450.52R-squared0.8672Adjusted R-squared0.8132F-statistic15.6893a) Suppose the average price of 3 units of good X is GH¢12, price of 2 units of goodY isGH¢60, the per capita income of Ghana is GH¢420.1.Write down the estimated demand equation for your firm's product and interpretthe parameter estimates.Determine the quantity of good X sold.Estimate the own price elasticity of demand and state the type of demand curve11.111.your firm has?

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Suppose you are the manager of a firm that produces good X in Ghana In order to make informed decision, you engaged an economist to estimate the demand equation for your product. Using data from 30 supermarkets around the country for the month of April, 2021, the estimated linear regression result for your product is shown in the table below: Variable Parameter Estimates Standard error Constant -164.0 20.24 Price of good X (P.) Price of good Y (P,) -3.50 1.55 2.50 0.28 Per capita Income (I) 0.45 0.52 R-squared 0.8672 Adjusted R-squared 0.8132 F-statistic 15.6893 a) Suppose the average price of 3 units of good X is GH¢12, price of 2 units of goodY is GH¢60, the per capita income of Ghana is GH¢420. Write down the estimated demand equation for your firm's product and interpret the parameter estimates. Determine the quantity of good X sold. Estimate the own price elasticity of demand and state the type of demand curve 1. 11. 111.

Suppose you are the manager of a firm that produces good X in Ghana In order to make informed decision, you engaged an economist to estimate the demand equation for your product. Using data from 30 supermarkets around the country for the month of April, 2021, the estimated linear regression result for your product is shown in the table below: Variable Parameter Estimates Standard error Constant -164.0 20.24 Price of good X (P.) Price of good Y (P,) -3.50 1.55 2.50 0.28 Per capita Income (I) 0.45 0.52 R-squared 0.8672 Adjusted R-squared 0.8132 F-statistic 15.6893 a) Suppose the average price of 3 units of good X is GH¢12, price of 2 units of goodY is GH¢60, the per capita income of Ghana is GH¢420. Write down the estimated demand equation for your firm's product and interpret the parameter estimates. Determine the quantity of good X sold. Estimate the own price elasticity of demand and state the type of demand curve 1. 11. 111.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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