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This is a very common methods of forecasting demand. Under this methods a relationship is established between quantity demanded( dependent variable) and independent variables such as income price of the good prices of the related goods etc. Once the relationship is established we derive regression equation assuming relationship to be linear. The equation will independent be of the form Y=A= BX. There could also be a curvy linear relationship between dependent and independent variable . once the regression equation is derived the value of y i, e, quantity demanded can be estimated for any given value of X.
1. Calculate price elasticity of demand and supply for the following functions when (a) P=8 and (b) Q=6. i. P= 40 - 0.5Q ii. Q= -40 + 0.75P iii
Attitude towards Risk: Let's assume the following: The utility function • has the single argument "wealth" measured in monetary units, • is strictly increasing, and
Before explaining returns to scale it will be instructive to make clear the distinction between change in the scale and changes in factor proportions. The difference between the ch
You estimate that the price elasticity of demand for one-acre plots in Lusaka is -1.5 and that income elasticity of demand is 5. Land owners intend to increase the price of a one-a
Duopolist P=20-0.1Q where Q=QA+QB CA=QA CB=0.1QB2
I am concerned that if we get into price war with Everest Solution
Prove the theory of second best with the help of a diagram
Allocative efficiency criteria are satisfied by the competitive model. Because P = MC, in each market in the economy there is no over- or under- allocation of resources in this ec
Q. What do you meant by Informal Economy? Informal Economy:Informal sector of the economy represents the production of services and goods for the own-use of the producers or fo
Deviation in graph
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