What inferences should be drawn from this analysis

Assignment Help Macroeconomics
Reference no: EM13340051

FCI owns 10 apartment buildings in a college town, which it rents exclusively to students. Each apartment building contains 100 rental units, but the owner is having cash flow problems due to an average vacancy rate of nearly 50 percent. The apartments in each building have comparable floor plans, but some buildings are closer to campus than others. The owner of FCI has data from last year on the number of apartments rented, the rental price (in dollars), and the amount spent on advertising (in hundreds of dollars) at each of the 10 apartments. These data, along with the distance (in miles) from each apartment building to campus are presented in rows 1 through 11 on the table (attached excel file with this document). As a consultant, regress the quantity demanded of apartments on price, advertising, and distance for the owner. What is the estimated demand function for FCI’s rental units?

If FCI raised rents at one complex by $100, what would you expect to happen to the number of units rented? If FCI raised rents at an average apartment building, what would happen to FCI’s total revenues?

What inferences should be drawn from this analysis?

Reference no: EM13340051

Questions Cloud

Helen can spend a combined total of $30 each day on these : Helen’s preferences over CDs (C) and sandwiches (S) are given by U(S, C) = SC +10(S +C), with MUC=S +10 and MUS= C +10. If the price of a CD is $9 and the price of a sandwich is $3, and Helen can spend a combined total of $30 each day on these goods,..
What is the total stored energy of the capacitors : The capacitors are identical except that C2 has a dielectric inserted between its plates. A 210 V battery is connected across the combination until electrostatic equilibrium is established, and then the battery is disconnected.
Design an algorithm to find the selling price of item sold : To make a profit, the prices of the items sold in a furniture store are marked up by 60%. Design an algorithm to find the selling price of an item sold at the furniture store. What information do you need to find the selling price?
Cost to purchase inventory : Method of inventory cost do you believe is superior to the others in providing information to potential investors? Explain and the costs to purchase inventory had been falling instead of rising.
What inferences should be drawn from this analysis : If FCI raised rents at one complex by $100, what would you expect to happen to the number of units rented? If FCI raised rents at an average apartment building, what would happen to FCI’s total revenues?
Two significant trading countries in the apbr : Select two significant trading countries in the APBR.  Compare these countries from the point of view of their relative size, population, natural resources, social structure and politic and business practices.
Program that prompts the user to enter the weight of person : The program should output the desired result. However, the program contains logic errors. Find and correct the logic errors so that the program works properly.
What is lf to find the latent heat of fusion : If you want to find the latent heat of fusion, you take a cup with 0.755 kg of water at 30.00 C and drop 0.0850 kg of ice initially at 0.000 C and it all reaches an equilibrium temperature of 19.00 C,
What will the final temperature be after all the solid form : If an piece of Iron (c = 450 J/kg C) at 65.00 C is dropped into .250 kg of ethyl alcohol at 25.00 C and the final temperature of the two comes to 35.00 C what was the mass of the piece of iron

Reviews

Write a Review

Macroeconomics Questions & Answers

  Types of “rules” that government set to encourage growth

What two kinds of changes in the capital stock can improve labor productivity. how can each type be illustrated with a per-worker production function.

  Illustrate what amount should kilarny company pay

Illustrate what amount should Kilarny Company pay for this investment if it earns a 6% return. What cash proceeds did Galway Bay receive from issuance of the bonds.

  Describe what type of foreign investments

Describe what type of foreign investments would be best for the economy's PPF. What are the opportunity costs of these decisions.

  Economic discussion questions

In most developing nations, there are long lines of taxis at airports, and taxis often wait 2or3 hours. What does this tell you about the price in developing nations market?

  What is the optimal profit function of the firm

A firm has cost function: C(y) = { y^2 + 1 if y > 0, {0 if y = 0, Let p be the price of output. 1) If p = 2, how much will the firm produce? If p = 1, how much will the firm produce? 2) What is the (optimal) profit function of the fir..

  Find a functional relationship between y and i

Find a functional relationship between Y and i, expressed as a function where Y depends on i (i.e. Y(i) ), such that the Quantity Theory of Money would hold

  Determination of the components of demand

Discuss the criticisms leveled by so called "classical" economists at the Keynesian model described above, from the initial simplistic responses

  Determine the optimal fraction of output purchased by govt

In the Macroeconomics book by Stephen Williamson (5th Edition) in the Appendix for Ch. 7-8 Problem 1 the problem asks: Suppose in Solow growth model that there is government spending financed by lump-sum taxes, with total government spending G=gY,..

  Explain gasoline stations is example of competitive markets

Grocery stores and gasoline stations in a large city would appear to be examples of competitive markets there are numerous relatively small sellers, each seller is a price-taker, and the products are quite similar.

  Reduce the exchange rate below

The exchange rate is currently $ 2.00 per pound. Anincrease in the price level in the US relative to the price levelin England will:a. increase the exchange rate to $2.50b. not affect the exchange ratec. increase the exchange rate to $3.00d. reduce t..

  Analyze the impact of expansionary monetary policies

For this assignment you will write a 500- to 700-word memo evaluating two conflicting consultant reports. Your report should.

  Use this while making decisions about public expenditures

Explain how do you plan to use this while making decisions about public expenditures.

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