Exam 3: Measuring and Using Demand

If a 12 percent increase in price leads to a 6 percent decrease in the quantity demanded of the good, as a result of the price change, the total revenue for this product will________ .

Using Excel, Big Poppa's estimates the weekly demand function for its BBQ sandwiches to be Q^d = 580.25 - (25.50 × P). What is the point elasticity of demand at a price of $10?

Using Excel, Big Poppa's estimates the weekly demand function for its BBQ sandwiches to be Q^d = 1,423.50 - (28.67 × P). In reference to the estimated slope coefficient for price , which of the following standard errors will provide the smallest 95 percent confidence interval for the slope coefficient?

Regression analyses can be limited by all of the following except which one?

Using Excel, Big Poppa's estimates the weekly demand function for its BBQ sandwiches to be Q^d = 1,568.23 - (18.67 × P). In reference to the estimated slope coefficient for price , which of the following standard errors will provide the largest 95 percent confidence interval for the slope coefficient?

Suzie's Bagels is a breakfast deli located on a university campus. Suzie wants to use regression analysis to estimate the demand for her bagel sandwiches. Suzie has collected daily data on the quantity of bagel sandwiches sold over the last year. In order to correctly specify the regression, all of the following variables should be considered except which one?

If the P- value for an estimated slope coefficient is 0.25, using 95 percent confidence, which of the following is true?

If a 10 percent increase in the price of a good leads to a 5 percent decrease in the quantity demanded of the good, the price elasticity of demand is elastic.

Using 95 percent confidence, if the P- value is 0.50, the null hypothesis is rejected.

You are the manager of a local flower shop and you compete with one other flower shop in your area. You estimate the cross- price elasticity of demand between your flowers and your competitor's flowers to be 2.60. If your competitor decreases the price of her flowers by 10 percent, you should expect which of the following?

You are the manager of a local flower shop and you compete with one other flower shop in your area. You estimate the cross- price elasticity of demand between your flowers and your competitor's flowers to be 2.60. Using this information, which of the following statements is true?

The table above shows a sample of actual data used to estimate the demand function for Happy Clams seafood dinners. -Refer to the table above. Excel estimates the demand function for Happy Clams seafood dinners to be: Q^d = 1,200 - (20.50 × P). Which of the following statements is true?

Using Excel, Best Paints estimates the log- linear weekly demand function for their gallon sized paints to be ln Q^d = 16.23 - (1.85 × ln P). At a price of $20, what is the price elasticity of demand?

Using Excel, Big Poppa's estimates the weekly demand function for its BBQ sandwiches to be Q^d = 580.25 - (25.50 × P). What is the point elasticity of demand at a price of $5?

Big City Java is a local coffee bar. Using Excel, the manager of Big City Java estimates the weekly demand function for their grand mocha coffees to be Q^d = 650 - (15.25 × P). The estimated regression equation suggests that if Big City Java decreased its price of grana mocha coffees from $7.50 to $5.50, the predicted quantity demanded of coffees would________ .

All of the following are true regarding the standard error of a coefficient except which one?

Using Excel, Big Poppa's estimates the weekly demand function for its BBQ sandwiches to be Q^d = 1,385.63 - (22.30 × P). In reference to the estimated slope coefficient for price , which of the following standard errors will provide the widest 95 percent confidence interval for the slope coefficient?

The demand for a generic box of 50 paper clips is likely to be inelastic.

You are the owner of a restaurant located in a beach resort in Hawaii and want to use regression analysis to estimate the demand for your fresh seafood dinners. You have collected data on the daily quantity of seafood dinners sold over the last summer season. In order to correctly specify your regression equation, all of the following variables should be considered except which one?

In a regression analysis that estimates a demand function, the dependent variable is the ________.