Estimate the demand function for widgets

Assignment Help Microeconomics
Reference no: EM13857266

Data has been collected from 15 regions where Widgets were sold last month. See table below:

Region

Quantity Sold

Price of Widgets (in dollars)

Median Income (In thousands of dollars)

Pricie of Zuggies (in dollars)

1

20

14

30

15

2

25

13

30

15

3

15

15

35

10

4

30

12

28

16

5

30

14

29

16

6

28

14

29

17

7

35

11

32

18

8

38

12

29

20

9

42

10

28

20

10

16

15

32

9

11

40

9

22

18

12

30

12

34

13

13

30

13

35

14

14

45

9

40

15

15

40

10

38

14

Use multiple regression to estimate the demand function for widgets. Is this a good equation overall? (Why) Which variables are significant? (Why) Are widgets normal goods or inferior goods? Are Zuggies substitutes for, complements to, Widgets? If you were contemplating entering a new region (16) where median income is $35 (thousand), Zuggies are selling for $14, and you plan to match Zuggie's price by also charging $14, how many Widgets do you estimate will be sold in region 16? (Note: you should be able to copy and paste the table above directly into an excel spread sheet.)

Reference no: EM13857266

Questions Cloud

Identify and briefly define the applicable rule : Issue - Identify the issue. Rule - Identify and briefly define the applicable rule, term, or concept (don't spend more than 2 sentences on this for any issue). Analysis - Apply the applicable rule, term, or concept to the facts. And, present argume..
Describe and explain overall wage trends in the usa : Describe and explain overall wage trends in the USA. Describe and explain trends in income disparity in the USA. Describe and explain trends in gender income inequality in the USA.
Which parameter is not part of defining network performance : Which parameter is not part of defining network performance? Which parameter is not part of defining network response time
Explain what is the output of the fuel cell stack : The reference voltage for a fuel cell at 80°C is Ev= 1.18 V. Assume any losses to be negligible and that the voltage at which it operates is the open circuit voltage; in reality, the voltage would be lower due to the current flow. What is the outp..
Estimate the demand function for widgets : Use multiple regression to estimate the demand function for widgets. Is this a good equation overall? (Why) Which variables are significant? (Why) Are widgets normal goods or inferior goods?
A taxpayer can automatically escape the penalty for underpay : A taxpayer can automatically escape the penalty for underpayment of taxes by
Statements about writing job specifications : Which of the following statements about writing job specifications is false
Estimate the steady state mass flux of flavor : The concentration of flavor within the sphere is 100% and mass diffusivity for the flavor compound within the liquid food is 7.8 X 10^-9 m2/s. Estimate the steady state mass flux of flavor into liquid food from surface of time-release sphere. The ..
Explain how higher quality can lead to lower costs : Why is it good or bad to operate an IT support services system (help desk) on a strictly, first come, first-served basis? Explain how higher quality can lead to lower costs

Reviews

Write a Review

Microeconomics Questions & Answers

  A fall in the price level will

A fall in the price level will:

  Do business firms operating in competitive markets have

Do business firms operating in competitive markets have a strong incentive to serve the interest of consumers? Are “good intentions” necessary if individuals are going to engage in actions that are helpful to others? Discuss.

  Use the energy information administration

1. Use the Energy Information Administration (EIA) site to answer the following questions (see the links below).

  Determining deadweight loss

A small town is served by many competing supermarkets, which have constant marginal cost. Using the diagram of market for groceries, show the consumer surplus, producer surplus, and total surplus.

  Define the implicit cost of the business

Suppose a persona quits a job paying $40,000 per year and starts a business with $100,000 withdrawn from a money-market account earning 8 percent per year.

  What market structure best characterizes market in which

what market structure best characterizes the market in which university of phoenix competes? how does this structure

  Continued growth of inter modal transportation in both count

Discuss the impact (negative and positive) that regulation/deregulation has had on the growth and/or continued growth of inter modal transportation in both countries (Europe and the United States)

  Explain positive supply shock and negative supply shock

Suppose that the economy is currentlyat potential output. Also suppose that you are an economicpolicy maker and that a college economics student asks youto rank, if possible, your most preferred to least preferred type of shock

  Affect the allocation of societys resources

Describe how the choices made between governments’ spending of taxpayer money or taxpayers spending that money themselves, affect the allocation of society’s resources. Give reasons.

  Evaluating the accounts payable of a certain firm

An auditor wishes to determine a rule to use in evaluating the accounts payable of a certain firm. There are 5000 such accounts. The auditor considers the accounts as satisfactory if there are mistakes in only 1% of them.

  What qualities would ideally suit a monopolistic firm

In a free market economy, firms operating in a perfectly competitive industry are said to have only one major choice to make. Which of the following correctly sets out that choice - What qualities would ideally suit a monopolistic firm with regard ..

  Describe features of the industry in which pepsi operate

Why do you think this difference occurs, and why do you think that the level of importance of marketing should always be higher, discuss with examples - Different level of importance in the organisational structure and hierarchy.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd