I need help with this question LN Quantity LN Price LN Income1.071.071.081.081.091.081.11.11.081.071.081.081.091.071.091.11.091.081.091.071.081.081.091.071.071.111.091.071.061.081.071.131.081.091.071.081.081.081.071.11.081.081.081.071.071.091.081.091.081.151.090.971.040.920.960.770.791.061.130.961.020.821.10.90.770.911.070.881.161.0810.881.131.090.640.91.191.270.941.10.280.970.861.131.030.960.951.120.70.990.981.071.11.210.931.040.90.974.44.394.44.394.394.394.394.394.394.394.44.394.394.394.394.394.44.44.394.394.44.394.394.44.394.394.394.44.394.394.44.394.44.44.394.394.394.44.44.44.394.394.44.44.394.394.44.394.39 2. You are the manager of a firm. The data on the demand for your product is saved in HW3_1.xlsx. Thefile contains data on the natural logarithm of the quantity sold, price, and the average income ofconsumers. Use this information to estimate a log-linear demand, and them determine the likelyimpact of a 3 percent decline in income on the demand for your product.

Log-linear model lnY=a+b ln*x+u

You are the manager of a firm. The data on the demand for your product is saved in HW3_1.xlsx. The file contains data on the natural logarithm of the quantity sold, price, and the average income of consumers. Use this information to estimate a log-linear demand, and them determine the likely impact of a 3 percent decline in income on the demand for your product.

You are the manager of a firm. The data on the demand for your product is saved in HW3_1.xlsx. The file contains data on the natural logarithm of the quantity sold, price, and the average income of consumers. Use this information to estimate a log-linear demand, and them determine the likely impact of a 3 percent decline in income on the demand for your product.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...

See similar textbooks

Similar questions

Plot/Graph Q, TUy, MUy, AUy in one graph and Indicate the Saturation Point.
ChatGPT fee7d-5344-48c9-98e7-5aabebadcdde yah 11/42 answered Ō Time Remaining: 38m Hide 22s will automatically save as you proceed through the test. Question 17 Answers are sav automatically Look at the figure for the demand for beef. If beef is a normal good and the price of beef increases, it will be represented as a movement from: Q Search Price of Beef B ---- D3 D₁ Quantity of Beef Full text description D2 W
Fast pls solve this question correctly in 5 min pls I will give u like for sure Mnty You sell donuts. Your cost per donut is 70 cents. You estimate that you will sell 300 donuts if the price is 80 cents per donut, and you will sell 280 donuts if the price is 90 cents per donut. Assume a linear demand function. What price maximizes profit?
A TV channel has estimated the demand for its service to be givenby the following function: Q=9.83p-1.2A2.5Y1.6P0-1.4whereQ = monthly sales in unitsP = price of the service in $A = promotional expenditure in $’000Y = average income of the market in $’000P0 = price of ‘home movies’ in $ The current price of the TV channel is $60, promotional expenditure is$120,000, average income is $28,000, and the price of ‘homemovies’ is$45.Indicate whether the following statements are true or false, givingyour reasons and making the necessary corrections h. Current sales are over a million units a month. i. The demand curve for the channel is given by:Q=9.83p-1.2j. The channel’s sales are more affected by the price of ‘home movies’ than by the price of its own service.k. If the channel increases its price this will reduce its profit.
> Why might your initial elasticity (PED) and (PES) calculations be unreliable?
You decide to sell pairs of running shoes. Assume that the quantity demanded is alinear function of the price. It is known that if you charge $40 per pair of shoes, thenyou will be able to sell 400 pairs of shoes in a month. If you charge $60 per pair ofrunning shos, then you can sell 300 pairs of shoes in a month. It is also known thatyour monthly fixed cost is $100 and pairs of shoes cost $20 per shoe to produce. Findwhat price you should charge for a pair of shoes in order to maximize profit in amonth
5.01 EC11_Effect on Supply and Demand WS VPN 11% Done EFFECTS ON SUPPLY AND DEMAND Directions: Event #1: Listed below are 10 events which could have some influence on the supply and demand of a product. On a clean sheet of paper, clearly label each event and record your answers. Read each of these events, and decide which factors that affect either consumers or sellers (utility, buying power, price of other goods and services, consumers, cost of production, number of producers, future prices, disasters and emergencies, government, or technology) (use I for each "event") are represented. You will also need to identify which group (consumers or sellers) it would influence. Event #2: A company introduces a new product intended to help college students improve their ability to take tests. The corn crop in one state was damaged by heavy rains and floods. Event #3: One pair of jeans looks the same as another pair but costs much less. Event #4: A candy manufacturer gives large pay increases…
The demand equation for a particular candy bar is px + x + 20p = 3000where 1000x candy bars are demanded per week when p cents is the price per bar. If the current price of the candy is 49 cents per bar and the price per bar is increasing at the rate of 0.2 cent each week, find the rate of change in the demand.
Assume that a retailer sells 1000 six packs of Pepsi per day at at $3./6pk. You, as an economic analysis , estimate that the cross price elastcity between pepsi and coca cola is 0.4. If the retailer raises the price of coca cola by 10%, how would sales of pepsi be affected, ceteris paribus, why
ELASTICITY EXERCISE Name _____________________________11) Due ____________ Please show work in detail. All questions utilize the multivariate demand function for Smooth Sailing sailboats in C6 on text page 83. Compute to three decimal places. Initial values are: PX = $9500 PY = $10000 I = $15000 A = $170000 W = 160 This function is: Qs = 89830 -40PS +20PX +15PY +2I +.001A +10W 1.(a) Use the above to calculate the arc price elasticity of demand between PS = $8000 decreasing to PS = $7000. The arc elasticity formula is: (b). Judging from the computation in (a), do you expect the revenue resulting from the decrease in price from $8000 to $7000 to increase, remain the same or decrease. (Hint: see the table on page 65 of Truett). Explain your choice. 2.(a). Calculate the point elasticity of demand for Smooth Sailing sailboats at PS = $8000 (which should make Qs = 141600). The formula is: 2.(b). Does this elasticity value indicate that…
Ypsilanti Market Research conducted a survey to find out whether people who earn more money purchase more expensive goods. The following graph indicates the relationship between income the survey subjects earned and the price of the home that they purchased. PRICE (Thousands of dollars per home) 500 450 400 350 300 250 200 150 100 50 L 0 10 20 30 40 50 60 70 80 INCOME (Thousands of dollars per year) 90 100
How to know whether to use point elasticity or arc elasticity?