The demand for haddock has been estimated as: log (Q) =a+b log (P)+c log (I) +d log (Pm) where Qquantity of haddock sold in New England P = price per pound of haddock I = a measure of personal income in the New England region Pm = an index of the price of meat Suppose b= -2.174, c = 0.877, and d = 1.909. What is the price elasticity of demand? O 1.909 0.877 -2.479 O -2.174 What is the income elasticity of demand? O 1.909 0.877 Ⓒ 0.459 -2.174 What is the cross price elasticity of demand? ○ 0.877 O 2.177 O -2.174 1.909 According to the estimated model, the demand for haddock is with respect to price. Suppose disposable income is expected to increase by 5 percent next year. Assuming all other factors remain constant, the quantity of haddock demanded next year will ▼ by percent.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4: Estimating Demand
Section: Chapter Questions
Problem 7E
Question
The demand for haddock has been estimated as:
log (Q)
=a+b log (P)+c log (I) +d log (Pm)
where
Qquantity of haddock sold in New England
P = price per pound of haddock
I = a measure of personal income in the New England region
Pm = an index of the price of meat
Suppose b= -2.174, c = 0.877, and d = 1.909.
What is the price elasticity of demand?
O 1.909
0.877
-2.479
O -2.174
What is the income elasticity of demand?
O 1.909
0.877
Ⓒ 0.459
-2.174
What is the cross price elasticity of demand?
○ 0.877
O 2.177
O -2.174
1.909
According to the estimated model, the demand for haddock is
with respect to price.
Suppose disposable income is expected to increase by 5 percent next year. Assuming all other factors remain constant, the quantity of haddock
demanded next year will
▼ by
percent.
Transcribed Image Text:The demand for haddock has been estimated as: log (Q) =a+b log (P)+c log (I) +d log (Pm) where Qquantity of haddock sold in New England P = price per pound of haddock I = a measure of personal income in the New England region Pm = an index of the price of meat Suppose b= -2.174, c = 0.877, and d = 1.909. What is the price elasticity of demand? O 1.909 0.877 -2.479 O -2.174 What is the income elasticity of demand? O 1.909 0.877 Ⓒ 0.459 -2.174 What is the cross price elasticity of demand? ○ 0.877 O 2.177 O -2.174 1.909 According to the estimated model, the demand for haddock is with respect to price. Suppose disposable income is expected to increase by 5 percent next year. Assuming all other factors remain constant, the quantity of haddock demanded next year will ▼ by percent.
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