Exam 3: Quantitative Demand Analysis

When the price of sugar was "low", consumers in the U.S.spent a total of $3 billion annually on sugar consumption.When the price doubled, consumer expenditures increased to $5 billion annually.This data indicates that:

The residual sum of squares and degrees of freedom due to the regression are

Your firm's research department has estimated the income elasticity of demand for Art Deco lawn furniture to be -0.85.You have just learned that due to an upturn in the economy, consumer incomes are expected to rise by 5 percent next year.How will this event affect your ordering decision for PVC pipe, which is the main component in your furniture?

Which of the following factors would not affect the own-price elasticity of a good?

You are the manager of a popular hat company.You know that the advertising elasticity of demand for your product is 0.25.How much will you have to increase advertising in order to increase demand by 5%?

When marginal revenue is positive for a linear (inverse) demand function, decreases in output will cause total revenues to