### Determine what happens to chocolate consumption

Assignment Help Econometrics
##### Reference no: EM13207642

Jen likes only chocolate and economics textbooks. Her demand functions for chocolate and textbooks are
given by
Qc =m / (pc + pt)
Qt =m /(pc + pt)
where m denotes her income and pc and pt the price of chocolate and textbooks respectively.

a. Are chocolate and textbooks complements or substitutes for Jen?

b. Calculate the income elasticity for chocolate. Is chocolate a normal good?

c. Assume we observe the following: Qt = 5; pc = 2; pt = 2. If the price of textbooks doubles, by how much does the income have to increase to keep the textbook consumption constant? What happens to chocolate consumption? Explain.

#### Questions Cloud

 Government policy favor certain kinds of immigrants : Should United States government policy favor certain kinds of immigrants? Should citizenship preference be given to the neediest applicants? The most talented? The most oppressed? The richest? Explain o-h acts as a harmonic oscillator : What wavelength (in s-1) of light would be required to change the vibrational number from n=0 to n=4, assuming O-H acts as a harmonic oscillator? What is the necessary levels of high powered money : Suppose the ratio of deposits that banks hold in the form of reserves is 7 percent. Suppose further that people want to hold 8 percent of their deposits in the form of cash. Then if the fed wants the money supply to be \$6,228 billion What is the dry unit weight of this material : A soil borrow material in its natural state in the ground has a unit weight of 118pcf. Its natural water content is 7%. What is the dry unit weight of this material? Determine what happens to chocolate consumption : Assume we observe the following: Qt = 5; pc = 2; pt = 2. If the price of textbooks doubles, by how much does the income have to increase to keep the textbook consumption constant What happens to chocolate consumption Explain. Determine the total resultant force : in inclined circular gate with water on one side shown in the figure. determine the total resultant force acting on the gate and the total location of center pressure. During world war I the united states used naval vessels : During World War I the United States used naval vessels Find the average time in system : If the time required to pay for parking is exponentially distributed with a mean of 15 seconds, find the average time in system. Determine the required pumping rate : Determine the required pumping rate. the aquifer has T= 1600 m2/day and the wells each have radius of influence of 600m.

### Write a Review

#### Design a simple econometric research project

Design a simple econometric research project

#### Multiplicative decomposition method

Multiplicative decomposition method

#### Market for cigarettes

The Australian government administers two programs that affect the market for cigarettes.

#### Solve the forecast model

Solve the forecast model

#### What are the marginal abatement cost functions

What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).

#### Write the t statistic for testing the null hypothesis

Explain why this model violates the assumption of no perfect collinearity.  Write the t statistic for testing the null hypothesis

#### What is economics system

What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type

#### Multiple choice questions related to market concentration

Determine when a competitively produced product generates negative externalities in production, the industry will,

#### Calculating number of units produced by firm

Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.

M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.

#### Calculating the average days past due and average flow time

Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:

#### Mechanism of an english auction and second price auction

Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.