regression result for your product is shown in the table below: Variable Parameter Estimates Standard error Constant -164.0 20.24 Price of good X (P,) Price of good Y (P,) -3.50 1.55 2.50 0.28 Per capita Income () 0.45 0.52 R-squared Adjusted R-squared 0.8672 0.8132 F-statistic 15.6893 a) Suppose the average price of 3 units of good X is GH¢12, price of 2 units of goodY is GH¢60, the per capita income of Ghana is GH¢420. Write down the estimated demand equation for your firm's product and interpret 1. the parameter estimates. Determine the quantity of good X sold. Estimate the own price elasticity of demand and state the type of demand curve 11. 111. your firm has? iv. What would be the effect of a price increase on the firm's total revenue? Assess the probable impact on your firm if the firm producing good Y decreases their price by 10%. Explain the adjusted R-squared Is the good Xa normal or inferior good? V. vi. vii.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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regression result for your product is shown in the table below:
Variable
Parameter Estimates
Standard error
Constant
-164.0
20.24
Price of good X (P,)
Price of good Y (P,)
-3.50
1.55
2.50
0.28
Per capita Income (/)
0.45
0.52
R-squared
Adjusted R-squared
0.8672
0.8132
F-statistic
15.6893
a) Suppose the average price of 3 units of good X is GH¢12, price of 2 units of goodY is
GH¢60, the per capita income of Ghana is GH¢420.
i.
Write down the estimated demand equation for your firm's product and interpret
the parameter estimates.
Determine the quantity of good X sold.
Estimate the own price elasticity of demand and state the type of demand curve
11.
111.
your firm has?
What would be the effect of a price increase on the firm's total revenue?
iv.
Assess the probable impact on your firm if the firm producing geod Y decreases
their price by 10%.
Explain the adjusted R-squared
Is the good X a normal or inferior good?
What is the relationship between good X and good Y?
V.
vi.
vii.
viii..
Transcribed Image Text:regression result for your product is shown in the table below: Variable Parameter Estimates Standard error Constant -164.0 20.24 Price of good X (P,) Price of good Y (P,) -3.50 1.55 2.50 0.28 Per capita Income (/) 0.45 0.52 R-squared Adjusted R-squared 0.8672 0.8132 F-statistic 15.6893 a) Suppose the average price of 3 units of good X is GH¢12, price of 2 units of goodY is GH¢60, the per capita income of Ghana is GH¢420. i. Write down the estimated demand equation for your firm's product and interpret the parameter estimates. Determine the quantity of good X sold. Estimate the own price elasticity of demand and state the type of demand curve 11. 111. your firm has? What would be the effect of a price increase on the firm's total revenue? iv. Assess the probable impact on your firm if the firm producing geod Y decreases their price by 10%. Explain the adjusted R-squared Is the good X a normal or inferior good? What is the relationship between good X and good Y? V. vi. vii. viii..
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