Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A study of cigarette demand resulted in the following logarithmic regression equation:
log(Q) = -2.55 - .29 log(P) - .09 log (Y) + .08 log(A) - .1W
(-2.07) (-1.05) (4.48) (-5.2)
Here, Q denotes annual cigarette consuption, P is the average price of cigarettes, Y is the per capita income, A is total spending on cigarette advertising, and W is a dummy variable whole value is 1 for yeas after 1963 and 0 for ealier years. The t-statistic for each coefficiient is shown in parenthesis. The R2 of the equation is .94.
a) What does the coeffiecient of log(P) represent? If cigarette prices increase by 20 percent, how will this affect consumption?
b) Are cigarette purchases sensitive to income? Explain
Distinguish between private and social costs and use this distinction to explain why the air in cities is so polluted from automobile exhaust fumes. Examine how government can try to correct this externality.
Suppose the required reserve-deposit ratio for demand deposit (rd) is greater than that of saving and time deposits (rt). Let k be the cash to total deposits ratio; t be ratio of saving and time deposits to total deposits; and e be the excess rese..
Edith agreed that in case of traffic jams, Shea Boulevard was a reasonable alternative.Neither of them knows the state of the highway ahead of time.
Describe the maximum and minimum amounts that can be produced
Suppose that the U.S. places tighter environmental regulations on crude oil extraction, an important component in the production of plastic. How might this environmental regulation on oil affect the market for recycled plastics?
In the context of a Keynesian open-economy income model for a country, carefully explain the impact of each of the following autonomous events upon equilibrium income in the country and upon the country’s current account balance: (a) an increase in d..
What happens if the board of directors of the FOMC and the board of governors whose chairman also happens to be chairman of the FOMC have different goals?
(b) What is the maximum total revenue per year that Solis can obtain from sales of its product (Give the exact dollar amount and show how you determined it.) (c) Calculate the point price elasticity of demand for Solis product when Q=50000. Is the..
Explain the motives of both the seller and buyer of a straddle. Use properly labelled diagrams to support your explanation. Assume that the strike prices are 0.50DM/$1, that the option premiumon the call is 0.05DM/$1, and that the option premium o..
What do you make of Karl Marx's contributions to sociology? What perceptions of Marx have you been exposed to in your society, and how do those perceptions influence your views?
Miss Phoneix accordingly, bought the tablets and consumed them in the manner described but instead of losing weight, she gained several kilograms.
a. What is the profit-maximising outcome? b. What is the outcome if each firm acts as a profit-maximising unit? Explain.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd