Consider the following model Y=B1 + B2 In X₂ + B3 In X3 + u where Y- per capita consumption of tea, X₂ price of coffee (measured in dollars per pound), = X3 = price of sugar (measured in dollars per pound). Suppose coffee and tea are substitutes. What would be the sign of the coefficient B₂? OB2> 0 32 0 O B2=0 This cannot be determined with the amount of information given 4
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- QUESTION “generic drug”contains the same active chemical ingredientas a drug that was previouslyprotected by a patent. Generic drugs are essentially the sameand are sold by many different, smallfirmsafter the original patent has expired. A well-known example is the antibiotic penicillin. The COVID-19 pandemic has seen high use of penicillin by those infected by the virus. Using the demand-supply model, analyse this change inconsumer preferencesregarding this drug. Examine the likely consequences in one or two related markets of your choice.Given the following data X (consumers of teff) or popn 3 6 8 1 13 13 14 Y ( teff consumption) 8 6 10 12 12 14 20 year 2013 2014 2015 2016 2017 2018 2019 Estimate the regression equation, Y= a+bX, Where Y denotes demand for teff while X is consumers of teff (population) By assuming demand for teff is only affected by its consumers, find the amount demand for teff in the year 2022 if the populations (consumers of teff) are about 18 people? (Hint: use the least square method, parameter a and b can be estimated by solving the two linear equations) SY= na+ bSX SXY=aSX +b Where n is number of years. For example, Estimate the sales for 2012, 2015 and fit a linear regression equation and draw a trend line.ar X Sales (Y) XY X2 year X Sales (Y) XY X2 2002 1 22734 22734 1 2003 2 24731 49462 4 2004 3 31489 94467 9 2005 4 44685 178740 16 2006 5 55319…The annual demand for imported oranges is given by the following equation:?? = 600,000 − 30,000?where ? is the price per kilogram and ?? is quantity of kilograms demanded per year.The supply of imported oranges is given by the equation:?? = 20,000? b. Suppose that a $1-per-gallon tax is levied on the price of oranges received by sellers. Use both graphic and algebraic techniques to show the impact of the tax on market equilibrium.
- Which of the following are monotonic transformations? Please explain. 1) u = v² 2) u = lnv 3)u = -e^-vThe table lists weights (pounds) and highway mileage amounts (mpg) for seven automobiles. Use the sample data to construct a scatterplot. Use the first variable for the x-axis. Based on the scatterplot, what do you conclude about a linear correlation? Weight (lb) Highway (mpg) Which scatterplot below shows the data? O A. 40 20+ 2000 5000 2820 3185 3825 4150 4330 2440 3575 33 32 27 24 23 38 28 Weight (lb) Q B. 40 20++ 2000 . T Q a 5000 Weight (lb) Is there a linear relationship between weight and highway mileage? O A. No, there appears to be a relationship, but it is not linear. O B. Yes, as the weight increases the highway mileage increases. O C. Yes, as the weight increases the highway mileage decreases. C O C. 40- 20+ 2000 5000 Weight (lb) Q O D. 40- 20+ 2000 • 5000 Weight (lb) Q Q ✔Suppose you observed that the consumption of organges increased sharply last year, however thet total consumer expenditure on oranges did not change. Did a supply shift, demand shift or both cause this? explain using graphs
- TABLE 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%…3. Dcmand and supply cquations for ricc arc given by Demand: 400 – 10P + 24Q = 0 Supply: 100 + 20P – 148Q = 0 Where Q denotes quantity (in 000s tonnes per annum) and P denotes price (in $ per tonne), Use the matrix inverse method to determine the equilibrium price and equilibrium quantity.How would you interpret the slope coefficient of the following regression output given that X represents individual height in centimeters and Y represents wages in rands/hour. Ỹ; = -33 + 4.3X₂ O A. On average, when an individual's height is zero, they pay their employer R33 per hour. O B. On average, taller individuals earn higher wages. O C. On average, for each one centimeter increase in height, a given individual will lower their wage by R4.3 per hour. OD. On average, for each centimeter in height, an individual will increase their wage by -33 + R4.3 per hour. O E. On average, when an individual reduces their height by one centimeter, they necessarily increase their wages by R4.3 per hour.
- The Law of Demand states that as the price of a good increases, ceteris penbus, the The relationship that exists between these two variables can be described as decreases. This can be shown graphically with demand curve or numericaly in a table using a 0Which of the following statements are true about correlation? O A. The correlation describes the tendency of two data series to move together. B. A negative correlation indicates that two data series do not covary with each other. C. The correlation coefficient mesuares the degree of correlation between the two data series. D. A strong positive correlation or strong negative correlation provides evidence of covariation of two data series. O E. A positive correlation indicates that two data series covary with each other.Help with below homework. Pls state following statements are "True" or "False". Explain briefly