Ivy, a General Manager at Mumias Sugar Company, estimated a multiplicative demand function of the form: Qa = aPªp[ª%Poª• using a cross-section data collected in the company sales on 30th June, 2016. The estimation results are as follows: Constant Price (P) Income (I) Price of Other Good (P0) Estimated coefficient 0.022 -0.223 1.354 0.133 Standard Error 0.012 0.056 0.502 0.814 t-statistic (1.19) (-3.98) -2.69 -0.13 Number of Observations, n = 210; R-squared = 0.7516 Critical Students' t = 1.96 at 5% Level of Significance
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- You are an analyst. Your friend started a new business of selling masks. She knows that you have adequate knowledge of economics and business, and hence, asked for your help in making some important business decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found PED in February was 1.8 (absolute value), and PED of Masks in April was 0.7 (absolute value). (a) What type of good mask is in the month of April in terms of elasticity? (b) The market price of the mask in June was 10 taka per unit and revenue earned in June was 150 taka. How many masks were sold in June? (c) In 2(b), you found the quantity demanded masks in June. You received the data for August and observed that the price in August was 25 per unit and the quantity demanded of masks in August is 7. Calculate the Price Elasticity of Demand (PED) for masks from June to August.Due to high company taxes prevailing in the auto mobile industries, the average prices of motor vehicle specifically sedan has increased from a N$ 170 000 to a N$190 000 and the quantity demand for sedan motor vehicle decreased from 1000 units to 800 units. Use elasticity method to calculate the price elasticity of demand for sedan motor vehicleThe price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltddecided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: A. Advise your management of the strategy that could be adopted by your firm to maintain sales. B. Also, advise your government on recommendedinterventions in the cigarette market.
- Please no written by hand solutions Question 19 Which of the following figures is most likely to represent the cross-price elestioly of dernand of FiereOne internet services to Starlink intemet services. a) -3 b) 0 c) 2.5 d)⋅0.55Q7. Do quadretic regression to find the forcast value of quauter 9 and 10 Quarters (x) 1 2 3 4 5 6 7 8 9 10 Demand (y) 5.10 11.40 22.70 35.00 64.22 81.77 115.50 149.90Data table Two Stage Least Squares Estimates of the Demand for Cigarettes Using Panel Data for 48 U.S. States Dependent variable: In Regressor cigarettes i, 1995 In (pi $)-In pcigarettes i, 1995 In (Inci, 1995) - In (Inci, 1985) Intercept cigarettes Instrumental variable(s) First-stage F-statistic Overidentifying restrictions J-test and p-value - In cigrattes i, 1985 Q (1) -0.94** (0.21) 0.53 (0.34) -0.12 (0.07) Sales tax 33.70 Print (2) -1.34** (0.23) 0.43 (0.30) -0.02 (0.07) Cigarette-specific tax 107.20 (3) - 1.20** (0.20) 0.46 (0.31) -0.05 (0.06) Done Both sales tax cigarette-specif These regressions were estimated using data for 48 U.S. states (48 observations on the 10-year differenc data are described in Appendix 12.1. The J-test of overidentifying restrictions is described in Key Concept p-value is given in parentheses), and the first-stage F-statistic is described in Key Concept 12.5. Individual coefficients are statistically significant at the *5% level or **1% significance…
- The price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: Also, advise your government on recommended interventions in the cigarette market.Homework (Ch 05) Consider the market for soybeans. The following graph shows the weekly demand for soybeans and the weekly supply of soybeans. Suppose new farming technology is developed that enables growers to produce more crops with the same resources. Show the effect this shock has on the market for soybeans by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. 30 Demand 24 Supply Supply 67°F Sunny PRICE (Dollars per bushel) Demand Q OTABLE 12.1 | Two Stage Least Squares Estimates of the Demand for Cigarettes Using Panel Data for 48 U.S. States Dependent variable: In(Qfte) – In(Qfte) cigarettes Regressor (1) (2) (3) In(Peisarettes) - In(Pçigarettes -0.94** -1.34** -1.20** i,1995 i,1985 (0.21) (0.23) (0.20) In(Inc;1995) – In(Inc;1985) 0.53 (0.34) 0.43 (0.30) 0.46 (0.31) Intercept -0.12 -0.02 -0.05 (0.07) (0.07) (0.06) Both sales tax and Instrumental variable(s) Sales tax Cigarette-specific tax cigarette-specific tax First-stage F-statistic 33.70 107.20 88.60 Overidentifying restrictions J-test and p-value 4.93 (0.026) These regressions were estimated using data for 48 U.S. states (48 observations on the 10-year differences). The data are described in Appendix 12.1. The J-test of overidentifying restrictions is described in Key Concept 12.6 (its p-value is given in parentheses), and the first-stage F-statistic is described in Key Concept 12.5. Individual coefficients are statistically significant at the *5%…
- The price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: Advise your management ofthe strategy that could be adopted by your firm to maintain sales.7t. Bicycling, the world's leading cycling magazine, reviews hundreds of bicycles throughout the year. Their "Road-Race" category contains reviews of bikes used by riders primarily interested in racing. One of the most important factors in selecting a bike for racing is the weight of the bike. The following data show the weight (pounds) and price ($) for 10 racing bikes reviewed by the magazine.† Brand Weight Price ($) FELT F5 17.8 2,100 PINARELLO Paris 16.1 6,250 ORBEA Orca GDR 14.9 8,370 EDDY MERCKX EMX-7 15.9 6,200 BH RC1 Ultegra 17.2 4,000 BH Ultralight 386 13.1 8,600 CERVELO S5 Team 16.2 6,000 GIANT TCR Advanced 2 17.1 2,580 WILIER TRIESTINA Gran Turismo 17.6 3,400 SPECIALIZED S-works Amira SL4 14.1 8,000 (a) Use the data to develop an estimated regression equation that could be used to estimate the price for a bike given the weight. (Round your numerical values to the nearest integer). ŷ = (b) Compute r2. (Round your answer to…The price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager, you noted that the price elasticity of demand was 0.8. As a manager of Big Tobacco Co Ltd: Advise your management of the strategy that could be adopted by your firm to maintain sales. Also, advise your government on recommended interventions in the cigarette market.