The most frequently used method for estimating demand functions is: market experiments. 0 0 0 0 О consumer interviews. regression analysis. focus groups. casual introspection.
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![The most frequently used method for estimating demand functions is:
market experiments.
consumer interviews.
regression analysis.
O O
focus groups.
casual introspection.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F464a1a55-c610-482e-a2a2-24704f019c09%2Fb6266383-315a-4f01-aa11-ec1c719c6dca%2Fyesh7fi_processed.png&w=3840&q=75)
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- With focus group interviews, a) researchers try to select a large sample so that they can extend the results to the whole population. b) the objective is to get the group to interact, so that many ideas are generated. c) it is typical for the researcher to develop quantitative summaries of the results. d) marketing managers can estimate the size of the market for a new product. consumers talk as a group for about 10 minutes and then meet individually with an interviewer.Demand equations derived from actual market data are a) empirical demand functions. b) never estimated using consumer interviews. c) generally estimated using regression analysis. d) both a and c e) all of the aboveGeneral Cereals is using a regression model to estimate the demand for Tweetie Sweeties, a whistle-shaped, sugar-coated breakfast cereal for children. The following (multiplicative exponential) demand function is being used: QD = 6,280 P(-2.15) A1.75N2.70 where QD = quantity demanded, in 10-oz boxes P = price per box, in dollars A = advertising expenditures on daytime television, in dollars N = proportion of the population under 12 years old, in percent What is the point price elasticity of demand for Tweetie Sweeties? 1.75 -1.23 2.70 -2.15 What is the advertising elasticity of demand? 0.65 1.75 -2.15 2.70 According to the estimated model, a percent increase in the proportion of the population under 12 years old by percent. the quantity demanded
- Other Companies (Part 2) You directed your research department to do some research on the demand for Tesla sedans. They selected BMW i3 Sedans and Chevy Bolts as comparative offerings. Using regression analysis, the research department comes up the following estimate for yearly demand. Qx = -40,000 -1*Px +0.02*M +2*PB +2*PC Where: Px = $70,000, M = $150,000, PB = $65,000, PC = $40,000 a. Is the own price elasticity of demand for Tesla sedans at the point defined above elastic or inelastic? If Mr. Musk decides to raise his prices, what will happen to his revenue. b. PB and PC represent the price for i3 sedans and Bolt sedans respectively. Are these items compliments or substitutes when compared to Teslas? Give evidence to support your answer. c. Is the demand for Tesla sedans elastic or inelastic to price changes of BMW i3 and Bolt at the price points given in the problem? Interpret the result you find and explain what it means.Please calculate the total cost of providing a 50% subsidy on purchases of fruit and vegetables at farmers markets by SNAP participants. Assume that you are estimating it for the state of Connecticut with 350,000 SNAP participants. The season for farmers markets and the use of subsidies is 5 months (May-September); subsidies can only be used during this period. Based on prior studies, you know that a typical SNAP participant that attends farmers markets will purchase on average 3 lb of fruit and 2 lb of vegetables per month. Average price for vegetables is $1.5 per lb and the price elasticity of demand for vegetables among SNAP participants is -0.6. Similarly, fruit cost on average $2.5 per lb and the demand elasticity for fruit is -0.8. How much should the state of Connecticut expect to pay in total subsidies each season if only 20% of SNAP participants will attend farmers markets?Electricity accounts for almost 20% of the production costs of aluminum smelters. A 10% increase in the price of electricity leads the smelters to reduce their production, thus lowering their demand for electricity by 5%. The adoption of recent technological innovations would allow aluminum plants to use less electricity in the future. This suggests that the demand for electricity by aluminum smelters in the short term is (a) inelastic. (b) less elastic than their demand for electricity in the long run. (c) Both of the above answers are correct. (d) None of the above answers are correct.
- For this question and the next few following, you should use the dataset below. Over the range from $4 to $6, Qd goes from 48 to 44. Using this range of prices and quantities, you should calculate the coefficient of price elasticity of demand. In the box labeled A1, the coefficient of price elasticity of demand is: 4 .22 2 .33Over the range from $12 to $14, Qd goes from 30 to 24. Using this range of prices and quantities, you should calculate the coefficient of price elasticity of demand. In the box labeled E1, the coefficient of price elasticity of demand is: 2 6 1.36 1.44 In box E2, you would interpret the coefficient calculated in the previous question. Therefore, you would characterize this range as: Elastic Unit Elastic Inelastic None of the AboveQuantile regression (QR) is different from OLS in that: a. QR estimates marginal effects at the mean values of the dependent variables. b. QR does not estimate marginal effects at the mean values of the dependent and independent variables. c. QR minimizes the sum of squared residuals to obtain the coefficient estimates. d. QR only uses the data below the quantile where the quantile regression is being estimated.
- The Physics Club sells E = mc2 T-shirts at the local flea market. Unfortunately, the club's previous administration has been losing money for years, so you decide to do an analysis of the sales. A quadratic regression based on old sales data reveals the following demand equation for the T-shirts. q = −2p2 + 30p (9 ≤ p ≤ 15) Here, p is the price the club charges per T-shirt, and q is the number it can sell each day at the flea market. (a) Obtain a formula for the price elasticity of demand for E = mc2 T-shirts. E = (b) Compute the elasticity of demand if the price is set at $9 per shirt. (Round your answer to two decimal places.) Interpret the result. The demand for E = mc2 T-shirts is going down by about ____% per 1% increase in the price. (c) How much should the Physics Club charge for the T-shirts to obtain the maximum daily revenue? $ What will the revenue be? $QUESTION 4 In preparation for the new season, a local junior soccer club attempts to predict the number of children that will register to play soccer at different prices. The club believes that at a price of $162.83 per child, 90 children will register to play soccer. Additionally, at a price of $88.04 per child, it is believed that 130 children will register to play soccer. It cannot be assumed that the demand curve is linear. Calculate the midpoint price elasticity of demand for soccer registrations. Round your answer to the nearest two decimal places, giving a positive value for elasticity.
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