Derive the equation for the demand curve

Reference no: EM1376310

Assume that the John Smith, the manager of marketing division of Chevrolet at GM, estimated the following regression equation for Chevrolet automobiles:

Qc=100,000 - 100 Pc + 2,000N + 50I + 30Pf - 1,000 Pg + 3A + 40,000P1

Where Qc= quantity demanded per year of Chevrolet automobiles
Pc= Price of Chev. automobiles in dollars
N= population of the USA in millions
I= per capita disposable income in dollars
Pf= price of Ford automobiles in dollars
Pg= real price of gasoline in cents per gallon
A= advertising expenditures by Chevrolet in dollars per year
P1= credit incentives to purchase Chevrolets, in percentage points below the rate of interest on borrowing in the absence of incentives

(i) Indicate the change in the number of Chevrolets purchased per year (Qc) for each unit change in the independent or explanatory variable

(ii) Find the value of Qc if the average value of Pc=$9000 , N=200 million , I=$10,000 , Pf=1 , Pg=80 cents , A=$200,000 and if P1=1

(iii) Derive the equation for the demand curve for Chevrolet

(iv) Plot the demand curve

Reference no: EM1376310

Questions Cloud

Discuss the role of federal reserve in economy : This answer give vital hints on why the Federal Reserve establish general and specific rates of interest. This explains the recent tools the Federal Reserve has used to influence the United States economy.

Implement a basic shell that restricts runtime of processes : Implement a basic shell that restricts the runtime of processes executed from within it. Your shell will read input from the users and execute it as a new process, but if that program runs longer than it should, your shell will kill the process an..

Question about multiple regression : Assume that when using the multiple regression in the formula Y = b1X1 and b2X2 + E that X1 represents wages and X2 represents transportation expenses?

Regression equation to predict average hourly earnings : This question refers to the estimated regressions in table 1 computed using data for 1988 from the United States Current Population opinion poll.

Derive the equation for the demand curve : Assume that the John Smith, the manager of marketing division of Chevrolet at GM, estimated the given regression equation for Chevrolet automobiles:

Determine the demand equation function : Use the given equation and determine the demand equation as a function of Ps if the price of other pastas (Po) is $2,

Find coefficient of determination : The information in the table given below are the results of a random sample of current home sales in your neighborhood that your boss has asked you to use to estimate relationship in selling price of house and number of square feet in it.

Computing regression lines and coefficient of squares : Computing regression lines, coefficient of squares, graphing dependent and independent variables using square footage vs home sales.

Survey to learn the buying intentions : May Brothers Department Store has constructed a survey to learn purchasing intentions of a sample of sixty-two department store customers.

User Account

All Pages