Say, Proton estimated the following demand equation for its new car model- Hang Jebat 1.5, using data from 42 car sales centers around the Klang valley for the month of October, 2023. Calculate the elasticity for Y, A and M and briefly comment on what information this gives you in each case. (PS: Please help to write the answer straight forward and simple) QHJ = 500-16.01 PHJ +5.20 PKIA +3.50 PNISSAN +12.1Y +1.60 A + 3.25 M-t sta(2.02)(-3.5)(2.6)(3.5)R2 = 0.75n = 42 F = 18.46(2.39) (1.21)QHU = HANG JEBAT quantity sold per monthPHJ Price of HANG JEBAT 1.5= RM50,000PKIA Price of KIA 1.5 car = RM 60,000PNISSAN Price of NISSAN 1.5 car = RM 65,000Y per capital income of the surrounding area = RM 30,000A = Monthly advertising expenditure = RM100,000M = number of car sold in a standard urban area = 1500 units(2.10)C

Demand for Proton Hang Jebat 1.5 (HJ) and its degree of its elasticityAn estimation of the quantity…

QHJ = 500-16.01 PHJ +5.20 PKIA +3.50 PNISSAN +12.1Y +1.60 A + 3.25 M - t sta(2.02) (-3.5) (2.6) (3.5) R2 = 0.75 n = 42 F = 18.46 (2.39) (1.21) QHU = HANG JEBAT quantity sold per month PHJ Price of HANG JEBAT 1.5= RM50,000 PKIA Price of KIA 1.5 car = RM 60,000 PNISSAN Price of NISSAN 1.5 car = RM 65,000 Y per capital income of the surrounding area = RM 30,000 A = Monthly advertising expenditure = RM100,000 M = number of car sold in a standard urban area = 1500 units (2.10) C

QHJ = 500-16.01 PHJ +5.20 PKIA +3.50 PNISSAN +12.1Y +1.60 A + 3.25 M - t sta(2.02) (-3.5) (2.6) (3.5) R2 = 0.75 n = 42 F = 18.46 (2.39) (1.21) QHU = HANG JEBAT quantity sold per month PHJ Price of HANG JEBAT 1.5= RM50,000 PKIA Price of KIA 1.5 car = RM 60,000 PNISSAN Price of NISSAN 1.5 car = RM 65,000 Y per capital income of the surrounding area = RM 30,000 A = Monthly advertising expenditure = RM100,000 M = number of car sold in a standard urban area = 1500 units (2.10) C

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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