4-15 Consumption of hamburgers (thousands of burgers per week) in twelve different cities isshown here. Prices of hamburgers, income per capita (in $1,000s), and prices of hot dogs forthe cities, are also shown on the next page.City123456789101112a.HamburgerConsumption50809510570855560759010065HamburgerPrice$1.501.351.251.201.401.301.501.451.351.251.201.45Income($1,000s)12.014.215.016.013.814.313.313.313.714.515.213.6Hot DogPrice$1.801.551.451.351.601.501.701.701.601.501.351.65Use regression analysis to estimate hamburger consumption as a multiplicative functionof the price of hamburgers, income, and hot dog price. Write the equation, t-statistics,and the coefficient of determination. Which coefficients are significant at the 0.05 level?b. Based on the estimates from part (a), what are the price, income, and cross elasticities?Is the cross elasticity consistent with economic theory? Explain.

The following model we have estimated: HCi = Ci + β1 HPi + β2 HDPi + β3 Incomei + Ui Where C is the…

4-15 Consumption of hamburgers (thousands of burgers per week) in twelve different cities is shown here. Prices of hamburgers, income per capita (in $1,000s), and prices of hot dogs for the cities, are also shown on the next page. City 1 23 45678 9 10 11 12 Hamburger Consumption 50 80 95 105 70 85 55 60 75 90 100 65 Hamburger Price $1.50 1.35 1.25 1.20 1.40 1.30 1.50 1.45 1.35 1.25 1.20 1.45 Income ($1,000s) 12.0 14.2 15.0 16.0 13.8 14.3 13.3 13.3 13.7 14.5 15.2 13.6 Hot Dog the pri Price $1.80 1.55 1.45 1.35 1.60 1.50 1.70 1.70 1.60 1.50 1.35 1.65 a. Use regression analysis to estimate hamburger consumption as a multiplicative function of the price of hamburgers, income, and hot dog price. Write the equation, t-statistics, and the coefficient of determination. Which coefficients are significant at the 0.05 level?

4-15 Consumption of hamburgers (thousands of burgers per week) in twelve different cities is shown here. Prices of hamburgers, income per capita (in $1,000s), and prices of hot dogs for the cities, are also shown on the next page. City 1 23 45678 9 10 11 12 Hamburger Consumption 50 80 95 105 70 85 55 60 75 90 100 65 Hamburger Price $1.50 1.35 1.25 1.20 1.40 1.30 1.50 1.45 1.35 1.25 1.20 1.45 Income ($1,000s) 12.0 14.2 15.0 16.0 13.8 14.3 13.3 13.3 13.7 14.5 15.2 13.6 Hot Dog the pri Price $1.80 1.55 1.45 1.35 1.60 1.50 1.70 1.70 1.60 1.50 1.35 1.65 a. Use regression analysis to estimate hamburger consumption as a multiplicative function of the price of hamburgers, income, and hot dog price. Write the equation, t-statistics, and the coefficient of determination. Which coefficients are significant at the 0.05 level?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter23: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 3CQ

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What aspects of the market for digital cameras are influencing it?
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