You are the manager of a firm that produces a vegetable cooking oil in Ghana. In order to make informed decision, you engaged an economist to estimate the demand equation for your product. Using data from 25 supermarkets around the country for the month of February, 2021, the estimated linear regression result for your product is shown in the table below: Variable Constant Parameter Estimates Standard error -164.0 20.24 Price of vegetable cooking oil (P,) Price of palm oil (P,) Per capita Income () -3.50 1.55 2,50 0.28 0.45 0.52 R-squared 0.8672 Adjusted R-squared 0.8132 F-statistic 15.6893 a) Suppose the average price of 3 gallons of vegetable cooking oil is GH¢12, price of 2 gallons of palm oil 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. ii. Detemine the quantity of vegetable cooking oil sold. Estimate the own price elasticity of demand and state the type of demand curve…

Please solve questions 15, 16 and 17.  The multivariate demand function below will be needed for questions 12-18.   Setting: Grapple, Inc. is a leading seller of laptop personal computers.  However, they want to become a leading tablet seller, too.  Your marketing department, aided by your economics staff, has estimated a function to help you in the quest for market leader in tablets.  The variables are defined after the function. Qg = 10000 - 25Pg + 20Ph + 30Pr - 15dv - 35Psc - 10Pmm + 0.05Ag + 0.03A -25C + 0.1Y                Qg = the number of Grapple tablet computers demanded per week.   Pg = the price of each new Grapple tablet (in $).   Ph = the price of each Hewpaq tablet (in $).   Pr = the price of each Ronova tablet.   Pdv = the price to equip a tablet with Holographic digital video (in $, this is an upgrade option that enables three-dimensional graphics on a tablet.  Two-dimensional graphics is standard equipment).   Psc = the price of various screen sizes (in $, a 8 inch is…

The multivariate demand function below will be needed for questions 12-18.   Setting: Grapple, Inc. is a leading seller of laptop personal computers.  However, they want to become a leading tablet seller, too.  Your marketing department, aided by your economics staff, has estimated a function to help you in the quest for market leader in tablets.  The variables are defined after the function. Qg = 10000 - 25Pg + 20Ph + 30Pr - 15dv - 35Psc - 10Pmm + 0.05Ag + 0.03A -25C + 0.1Y                Qg = the number of Grapple tablet computers demanded per week.   Pg = the price of each new Grapple tablet (in $).   Ph = the price of each Hewpaq tablet (in $).   Pr = the price of each Ronova tablet.   Pdv = the price to equip a tablet with Holographic digital video (in $, this is an upgrade option that enables three-dimensional graphics on a tablet.  Two-dimensional graphics is standard equipment).   Psc = the price of various screen sizes (in $, a 8 inch is standard, but upgrade options are 10…

The multivariate demand function below will be needed for questions 12-18.   Setting: Grapple, Inc. is a leading seller of laptop personal computers.  However, they want to become a leading tablet seller, too.  Your marketing department, aided by your economics staff, has estimated a function to help you in the quest for market leader in tablets.  The variables are defined after the function.   Qg = the number of Grapple tablet computers demanded per week.   Pg = the price of each new Grapple tablet (in $).   Ph = the price of each Hewpaq tablet (in $).   Pr = the price of each Ronova tablet.   Pdv = the price to equip a tablet with Holographic digital video (in $, this is an upgrade option that enables three-dimensional graphics on a tablet.  Two-dimensional graphics is standard equipment).   Psc = the price of various screen sizes (in $, a 8 inch is standard, but upgrade options are 10 inch extra sharp, 12 inch, 12 inch extra sharp, Each also has a touch-screen option.  The upgrades…

Imagine that you work for the maker of a leading brand of low-calorie, frozen microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April.   Note: The following is a regression equation. Standard errors are in parentheses for the demand for widgets.   QD      =         - 5200 - 42P + 20PX + 5.2I + 0.20A + 0.25M                         (2.002) (17.5) (6.2)   (2.5)  (0.09)   (0.21) R2 = 0.55         n = 26              F = 4.88 Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables: Q         =         Quantity demanded of 3-pack units P (in cents)      =         Price of the product = 500 cents per 3-pack unit PX (in cents)    =         Price of leading competitor's product = 600 cents per 3-pack unit I (in dollars)      =         Per capita income of the standard metropolitan statistical area (SMSA) in…

QUESTION 14 Use the table below to create a nonlinear model based on the table to answer the following question(s). The Atlas Movies Theater is planning to reprice their ticket rates to maximize revenues. They have three classes of tickets: Classic, Silver, and Gold. The table below provides information on the average ticket sales, revenue and price elasticity on demand. They have a total seating capacity of 300. The table also provides the price range within which they plan to reduce their ticket rates. Atlas Movie Theater Ticketing Ticket Class Classic Silver Gold Current Rate 8.45 13.25 17.5 Total Capacity 300 $12.50 O $12.17 Average Daily Sold 150 80 30 Elasticity Price Range 6.5 11.5 15.5 -1.3 -2.25 -1.1 7.5 12.5 16.5 According to the nonlinear model, what is the new price for Silver tickets? O $12.06 $7.40

Variables typically included in a multivariate demand function (other than the price and quantity of the item the demand function represents) are consumer tastes and preferences, the number of buyers, spendable (disposable) income, prices of substitute goods, prices of complementary goods, advertising expenditures, weather, and expectations.  Recalling that the price of the item being considered is placed on the vertical axis, and the quantity on the horizontal axis, the other variables are termed demand shifters.  Please answer the following questions about the affect changes in other variables might have on the demand for the item.  These changes will either cause demand to increase (shift right) or decrease (shift left).  Use either word as applicable, for the short answer.   If the price of a good increases because the demand for it increases, What would you expect the demand for its complement to do?       If the demand for coffee beans increases, then what is likely to happen…

potter makes and sells ceramic bowls. It is observed that when the price is $32, only 9 bowls are sold in a week; but when the price decreases to $10, weekly sales rise to 20. Assuming that demand can be modelled by a linear function, (a) obtain a formula for Pin terms of Q (b) Calculate for the slope of the curve if the relationship between p and Q is linear. (c) comment on the likely reliability of the model

The marketing department at XYZ Company has found that, when Product ABC is sold at a price of pp dollars per unit, the number xx of Product ABC sold is given by the demand equation x=300−15px=300-15p. (a) Find the model that expresses the revenue RR as a function of the price pp. (Note that R=xpR=xp, the unit price times the number of units sold)