04 Jun Question ECN-601 Extended Problem with Chapter 4
Question
ECN-601 Extended Problem with Chapter 4
Complete the following questions using the spreadsheet, “ECN-601 Extended Problems Data.” Begin by entering the data provided on a separate Excel spreadsheet and label the tab “handout.” Complete the following steps for this assignment.
1. Use regression to estimate the demand function. Show the results.
2. Write the subsequent demand equation, with Qd as the dependent variable; Price, Advertising, Product Development, and Rel Price as the independent variables.
3. How strong is the relationship between the quantity demanded and the set of independent variables? List and briefly interpret at least two measures of this strength.
4. Which variable is most important in determining quantity demanded? Justify the reasoning?
5. Solve for the price elasticity of demand. Classify the product’s demand as elastic or inelastic. Price elasticity of demand can be found by the following equation:
ep = (coefficient of price variable x average price) / (average Qd)
Average values for all variables are below.
Qd 626,271
Price $ 10.06
Advertising $ 181,000
Product Development $ 125,417
Rel Price $ 10.16
6. Solve for the cross price elasticity of demand. Classify the relationship between these products as complements or substitutes. The formula for this coefficient is similar to the one for price elasticity:
Ex: (coefficient of Rel Price variable x average value of Rel price)/(average Qd)
The average variable levels are listed in part (f) above.
7. Forecast Qd if:
Price $10.00
Advertising $150,000
Product Development $150,000
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.