Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Setting: U.S. Auto manufacturers are trying to develop a multivariate function with which to estimate the demand for their gas-electric hybrid compact cars. Here is one that Motors General developed for its Jolt: Qj = 65000 – 20Pj + 20Pf + 35Pt – 5Pb + 0.2Tc + 0.05Y + 10Mg + 0.04A Where Qj = the number of Jolts demanded per week. Pj = the price of each new Jolt (in $). Pf = the price of each new Ford gas-electric hybrid (in $). Pt = the price of each new Toyota gas-electric hybrid (in $). Pb = the price of replacement batteries for the Jolt (in $). Tc = the amount of tax credit incentive offered with the purchase of a new hybrid (in $). Y = average weekly disposable income of a typical Jolt purchaser (in $). Mg = the miles per gallon of gas rating of the Jolt (in miles per gallon). A = average weekly Jolt advertising expenditure (in $).
1. Enter the following values into your Jolt demand function (be very careful with the calculation because the resulting quantity of Jolts demanded will be used in several questions to follow). Circle your answer on the answer sheet. Pj = $30000 Pf = $45000 Pt = $55000 Pb = $6000 Tc = $10000 Y = $1500 Mg = 60 A =$50000
2. What is the point cross-price elasticity of Jolt demand with respect to the Toyota price (Pt) of $55000? Work out completely and show the sign (+ or -); carry out to 3 decimal places. The formula is:
3. What is the point elasticity of Jolt demand with respect to the advertising expenditure (A) of $50000. Work out completely and show the sign (+ or -); carry out to four decimal places. The formula is:
Output gaps are caused by inflationary pressures generated by the unintended side effects of government policy. A low level of aggregate spending can cause real GDP to fall below potential output. When spending is high, output may rise above potentia..
Current average daily sales of hats are 60. The current price is $9.24 per hat. A store manager notices that a rival store is charging $8.50 per hat. Use the mid-point method to calculate the price elasticity of demand.
The distribution of family income is preferable than the distribution of household income because
Competition in the market is such that each of the firms independently produces a quantity of output.
hat is American's MRTS between K and L? MRTS between K and F. Should American try to ensure that all its MRTSs are equal. Explain what does American's production function exhibit constant, increasing, or decreasing returns to scale.
Assume that the Demand curve is given as Q=100-4P and the supply curve as P=10+4Q. What would be the price and quantity with perfectly competitive markets? What will happen to price and quantity if the government imposes a specific tax of $1 per unit..
The Determinants of Market Interest Rates. An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross product between the real rate and inflation.
How could you graphically illustrate economic profits made by a perfectly competitive industry, a monopolist industry and a monopolistic competitive industry.
Jane obtains utility W1/2 from wealth W. Jane has $100, but there is a 25% chance she will require surgery which costs $64. Sketch this utility function, indicating the values of Jane’s wealth if she does and if she does not need surgery. calculate t..
Consider a consumer who has utility function u(x, y) = min{2x, 3y} where x, y are amounts of goods X, Y consumed respectively. (a) If px = 1, py = 1, consumer has total budget w = 10. What’s the optimal consumption bundle of this consumer?
How have global economic institutions (e.g. IMF, WB, and WTO) been influenced by American values? Why have developing countries found it so difficult to adopt the neo-liberal economic model? Is the neo-liberal model universal, or does its success dep..
You are a representative in the NHL Players Association, responsible for ensuring integrity of the game and supporting rules that maintain/increase fan base. Under current rules, a player who receives a game misconduct penalty is suspended for the re..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd