Determine point price elasticity of demand for tweetie

Assignment Help Econometrics
Reference no: EM13213081

General creal is using a regression model to estimate the demand for Tweetie Sweeties, a whistle-shape, sugar-coated breakfast cereal for children The following(multiplicative exponential) demand function is being used. Qp=6,280P-2.15A 1.05N3.70. WhereQp=quantity demanded in 10 oz boxes P= price per box in dollars. A=advertising expenditure on daytime television in dollars . N= proportion of the population under 12 years old a) Determine the point price elasticity of demand for the Tweetie Sweeties. b)Determine the advertising elasticity of demand. c) what interpretation would you give to the exponent of N?

Reference no: EM13213081

Questions Cloud

Determine what is the net cash flow after tax : The Lone Pine Gold Company (LPG Co.) purchased its corporate headquarters office building for $390,000 in Lone Pine, California on May 18, 2002. After some remodeling and refurbishing that cost $56,000, the company placed this building in service ..
Explain what law states that mass and energy : What law states that mass and energy can be changed from one form to another but their sum remains constant?
What are the break-even levels of ebit : What are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? Is one higher than the other? Why?
Find out the initial temperature of the balloon : How hot will a 2.3 L balloon have to get to expand to a volume of 400 L? Assume that the initial temperature of the balloon is 25 degrees Celcius.
Determine point price elasticity of demand for tweetie : General creal is using a regression model to estimate the demand for Tweetie Sweeties, a whistle-shape, sugar-coated breakfast cereal for children The following(multiplicative exponential) demand function is being used. Qp=6,280P-2.15A 1.05N3.70.
Explain the heat of combustion of c10h18 : the heat of combustion of c10h18 is -6286 kj/mol. the heat of combustion for c10h8 is -5157kj/mol.
Would you expect an increase or decrease in total revenue : In an attempt to increase revenue and profits a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is -15 and the advertising elasticity of demand is -+0.6 would you expec..
Compute the heat of formation of propane : Calculate the heat of formation of propane given the heat of formation of H2O (liquid) is -285.3 kJ/mol and the heat of formation of CO2 is -393.5 kJ/mol.
Compute the price elasticity of demand for the subway rides : The subway fare in your town has just been increased from a current level of 50 cents to $1.00 per ride. As a result the transit authority notes a decline in ridership of 30 percent. a) compute the price elasticity of demand for the subway rides.

Reviews

Write a Review

Econometrics Questions & Answers

  What were thought to be unattainable heights

In 1993, Tim Berners-Lee created the Web and the bubble began. The bubble describes the amazing stock run of Internet companies, when their values soared to unbelievable and what were thought to be unattainable heights from 1993 to 2001.

  How test statistic can be computed from two regressions

State what is its distribution under the null and why and explain the conditions under which you would reject H0

  How to use the pw method and marr

A new truck can be purchase for $84,000. Its expected useful life is six years, at wich time market value will be zero. Annual receipts less expenses will approximatetely $18,000 per year over the six-year study period. Use the PW method and MARR ..

  How much ram do you desire if the price of ram falls

Suppose your designing your computer, with the same benefits from additional RAM described in the proceeding problem. How much RAM do you desire if the price of RAM falls to $50? 2,4,5, or 50. Suppose you are designed a new computer and want to mak..

  Find the cross-price elasticity of demand for fish for john

When the price of ham is $7 per pound, John buys 3 fish per week. When the price of ham rises to $13 per pound, John buys 7 fish per week. Find the cross-price elasticity of demand for fish for John.

  What interest rate the bond would yield to a bond buyer

What generalization can be drawn from the completed table There is insufficient data to make a generalization OR Bond price and interest rate are inversely related OR Bond price and interest rate are not related OR Bond price and interest rate are..

  Find the demand function for tickets

The following table shows part of the demand function for tickets to an outdoor summer concert by a popular singing group: Price (P)...Quantity (Q) 50........... 100 35.......... 180 20............300 10............500

  Where appropriate invoke a discussion of income

The government is considering two alternative types of taxes. The first is a tax on interest income, the second is a tax on labour income. Both are to be imposed at rate t (i.e., t=.20, or 20%). Your job is to help the government understand the im..

  Determine the present value of the stream of accounting

An owner can lease her building for $100,000 per year for three years. The explicit cost of maintaining the building is $35,000, and the implicit cost is $50,000. All revenues are received, and costs are borne, at the end of each year. If the inte..

  Compute the arc price elasticity of demand over the price

The older yourt factory has reduced the price of its popular Mmmm Sundae from $2.25 to$1.75. As a result the firm's daily sales of these sundaes have increased from 1,500/day to 1800/day. Compute the arc price elasticity of demand over this price a..

  Why vgi losing money in the business sector

Cooper Bank is considering making a loan to Valles Global Industries to buy a machine tool worth $300 million at 1% interest. The tool has no salvage value and is depreciated over 3 years by sum-of-years digits. In this state, VGI pays 50% tax. ..

  Compare the consumers budget constraint under policies

Instead of a lump-sum payout, this policy aims to make the firms more efficient. The proposed policy uses the 10 units to fund investments in productivity. Therefore the firm does not recieve a lump sum transfer. Rather, the firm now has a 5% incr..

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