Exam 3: Measuring and Using Demand

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?

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?

You are the owner of a firm that makes generic paper products. You estimate the income elasticity for your paper towels to be - 1.5. An economic recession will have which of the following effects on the demand for your paper products?

Economists have defined the price elasticity of demand using percentages because percentages do not depend on the unit of measurement.

You are the owner of a construction company that specializes in new beach- front condominiums. If the income elasticity for your condominiums is 4.25, all of the following statements are true except which one?

The scatter diagram above shows the actual data for the price and quantity demanded of a product. -Refer to the scatter diagram above. The diagram suggests which of the following?

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 predicted natural logarithm of the quantity (ln Q )?

If Excel estimated the 95 percent confidence interval for a slope coefficient for the price b^ to run from - 5.50 to - 2.30, it is not possible for the true slope coefficient to be equal to - 5.75.

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?

If Excel estimates the demand function for a product to be: Q^d = 1,500 - (5 × P)and a price of $125 is charged, the predicted quantity demanded for the product is 875.

Big Poppa's BBQ Sandwiches is a local restaurant specializing in BBQ sandwiches. Using Excel, Big Poppa's estimates the weekly demand function for its BBQ sandwiches to be Q^d = 1,576.55 - (25.50 × P). The estimated regression equation suggests which of the following is true?

Big Poppa's BBQ Sandwiches is a local restaurant specializing in BBQ sandwiches. Using Excel, Big Poppa's estimates the weekly demand function for its BBQ sandwiches to be Q^d = 1,576.55 - (25.50 × P). If Big Poppa's charges $15 per sandwich, the predicted quantity of sandwiches sold is________

Using Excel, the manager of Quick Breaks Coffees has estimated the daily demand function for its regular coffees; the results are shown in the table above. If a price of $5 is charged for the coffees, the predicted quantity demanded is ___________.

Using Excel, Big Pies Pizzas estimates the log- linear weekly demand function for their pizza to be ln Q^d = 8.23 - (1.50 × ln P). Which of the following statements is true?

A regression analysis estimated using Ordinary Least Squares (OLS)does all of the following except which one?

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 to $5, the predicted quantity demanded of coffees would _________.

If the estimated slope coefficient is = - 5.45 and the standard error for the slope coefficient is 1.75, which of the following is true using a 95 percent confidence level?

For any change in a business cycle, the percentage change in demand for a good with an income elasticity of 0.50 will be larger than the percentage change in demand for a good with an income elasticity of 0.25.

If a 4 percent increase in the price of a good leads to a 1 percent decrease in the quantity demanded, the price elasticity of demand for the good equals________ .