Your company, which specializes in running shoes for men who are growing increasingly follicly-challenged (BalderDash®), has the following demand function: Q=a+bP + cM + dR where Q is the quantity demanded of BalderDash's most popular shoes, Pis the price of that product, Mis consumer income, and R is the price of a related product. The regression results are: Adjusted R Square 0.7796 Independent Variables Coefficients Standard Error t Stat Intercept 21,055.04 1428.27 P -83.912 19.079 M 0.0266 0.013 2.064 0.047 R -16.6 10.664 -1.556 0.129 Discuss whether you think these regression results will generate good sales estimates for BalderDash. Now assume that the income is $69,100, the price of the related good is $39, and BalderDash chooses to set the price o its product at $54. b. What is the estimated number of units sold given the data above? (round to nearest unit; no decimals) c. What are the values for the own-price, income, and cross-price elasticities? P-value 14.74 8.1E-16 -4.398 0.000

Your company, which specializes in running shoes for men who are growing increasingly follicly-challenged (BalderDash®), has the following demand function: Q=a+bP + cM + dR where Q is the quantity demanded of BalderDash's most popular shoes, Pis the price of that product, Mis consumer income, and R is the price of a related product. The regression results are: Adjusted R Square 0.7796 Independent Variables Coefficients Standard Error t Stat Intercept 21,055.04 1428.27 P -83.912 19.079 M 0.0266 0.013 2.064 0.047 R -16.6 10.664 -1.556 0.129 Discuss whether you think these regression results will generate good sales estimates for BalderDash. Now assume that the income is $69,100, the price of the related good is $39, and BalderDash chooses to set the price o its product at $54. b. What is the estimated number of units sold given the data above? (round to nearest unit; no decimals) c. What are the values for the own-price, income, and cross-price elasticities? P-value 14.74 8.1E-16 -4.398 0.000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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