Determine the advertising elasticity of demand

Assignment Help Econometrics
Reference no: EM13212464

general cereals is using a regression model to estimate the demand for tweetie sweeties, a whistle shaped sugar coated breakfast cereal for children. the following(multiplicative exponential) demand function is being used: QD=6,282P-2.15A1.05N3.70 where QD = quanity demanded, in 10ox boxes

P= price per box, in dollars

A= advertising expenditures on daytime television, in dollars

N = proportion of the population under 12 years old

a. determine the point price elasticity of demand for tweetie sweeties.

b. determine the advertising elasticity of demand

c. what interpretation would you give to the exponent of N?

Reference no: EM13212464

Questions Cloud

What is the required actual mechanical advantage : An Industrial water shutoff valve is designed to operate with 40lbs of force and will encounter 150lbs of resistance force applied to a 2in diameter axle. What is the required actual mechanical advantage of the system?
Find the lift and drag per meter span acting on the airfoil : Consider two-dimensional flow over the double-wedge airfoil shown. Find the lift and drag per meter span acting on the airfoil and sketch the flow pattern. Find the pressure acting on all surfaces.
How would you characterize the demand for haddock : The demand for haddock has been estimated as log Q=a+b log P +c log I + d log Pm where Q= quantity of haddock sold in New England P= price per pound of haddock I= a measure of personal income in the New England region Pm= an index of the price of ..
What is the specific heat of air in us customary units : what is the specific heat of air in US customary units given that its value in SI units is approximately 1 kN.m/kg.K?
Determine the advertising elasticity of demand : general cereals is using a regression model to estimate the demand for tweetie sweeties, a whistle shaped sugar coated breakfast cereal for children. the following(multiplicative exponential) demand function is being used: QD=6,282P-2.15A1.05N3.70
Determine the maximum speed : A vehicle of mass 1500kg and track 1.8m has a centre of mass located centrally at 1,1m above the ground. It has to travel around a bend of 56m radius to the centre of mass.
Would you accept the investment at marr : The InterCell Company wants to participate in the upcoming World Fair. To participate, the firm needs to spend $1 million in year zero to develop a showcase. The showcase will produce a cash flow of $2.5 million at the end of year one.
Show the principle stresses on the neutral axis : Show the principle stresses on the neutral axis on a correctly oriented element relative to the axis of the beam.
What is the total current : A 60 ohm, 40 ohm, and 20 ohm resistor are each connected in parallel across a 120VAC source. What is the total current.

Reviews

Write a Review

Econometrics Questions & Answers

  Determine which project should be selected

A large profitable corporation is considering two mutually exclusive capital investments: Alt A. Initial Cost: 11,000Uniform Annual Benefit: 3,000 End of depreciable life salvage value: 2,000 Depreciation method: SL End of useful life salvage value

  What is the money multiplier

If the reserve ratio is lowered to 8%, what is the money multiplier and what is the maximum amount of money created by the same $5000 deposit, In a t-account show the bank balances for a $5000 deposit with a 10% reserve ratio. What is the money mu..

  What is the deadweight loss that results from the duopoly

Suppose there are two firms in a market who each simultaneously choose a quantity. Firms 1s quantity is q1 and firms 2s is q2. Therefore the market quantity is Q=q1+q2. The market demand curve is given by P=100-4Q. Also, each firm has constant mar..

  Calculate the saving function for freedonia

What is the value of the multiplier d. Calculate the saving function for Freedonia. Plot this sav- ing function on a graph with equation (2). Explain why the equilibrium income in this graph must be the same as in part b.

  Determine the profit maximizing price and output

Weekly demand and cost relations for Sandpiper Products, Inc., are given by the equations P = $180 - $10Q (Demand) TC = $75,000 + $5Q + $7.5Q2 Where Q is the quantity produced and sold per week. a. Determine the profit maximizing price and output. (Q..

  What are the equilibrium price and quantity in market

Suppose the market demand curve for a product is given by: Qd = 500 - 15P + 20I and the market supply schedule is: Qd = -25 + 10P + 10K. The initial values are I = 10, K = 5. a) What are the equilibrium price and quantity in this market

  Explain how would you rank the three applications

You are interviewing three people for one sales job. On the basis of your experience and insight, you believe Jane can sell 600 units a day, Joe can sell 450 units a day, and Joan can sell 400 units a day. The daily salary each person is asking is..

  Which point flat of the curve medicine is experienced

Which point flat of the curve medicine is experienced in the following example (imagine that antibiotics have been prescribed for a given population of 1000 elderly persons. Number of prescriptions 0,100,200,300,400,500.

  Create an excel plot of the two pw curves

A company is considering replacing its asphalt parking lots with concrete, at first cost of $1,200,000, and an annual maintenance cost of $15,000. Another option is also available, which is resurfacing the parking lots with asphalt with a first co..

  How is the curve related to the natural rate of unemployment

What were the aggregate supply shocks to the American economy during the 1970s and early 1980s How did these shocks affect interpretation of the Phillips Curve What are the characteristics of the long-run Phillips Curve

  What annual amount will you be able to withdraw

You decide to open an individual retirement account (IRA) at your local bank that pays 8 percent/year compounded annually. At the end of each of the next 40 years, you will deposit $4,000 into the account. Three years after your last deposit.

  What is the number of degrees of freedom

Where Qx is the quantity demanded of Product X, Px is the price of X, Y is income, and r is the prime interest rate (given in decimals, e.g., 0.02 or 0.05) The standard error of each estimated coefficient is given in parentheses below it.

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