regression result for your product is shown in the table below:VariableParameter EstimatesStandard errorConstant-164.020.24Price of good X (P,)Price of good Y (P,)-3.501.552.500.28Per capita Income ()0.450.52R-squaredAdjusted R-squared0.86720.8132F-statistic15.6893a) Suppose the average price of 3 units of good X is GH¢12, price of 2 units of goodY isGHe60, the per capita income of Ghana is GH¢420.Write down the estimated demand equation for your firms product and interpretthe1.parameter estimates.I11.Determine the quantity of good X sold.111.Estimate the own price elasticity of demand and state the type of demand curveтуреirm has?yourWhat would be the effect of a price iıncrease on the firm's total revenue?iv.V.Assess the probable impact on your firm if the firm producing good Y decreasestheirprice by 10%.Explain the adjusted R-squaredIs the good X a normal or inferior good?vi.vii.viii.What is the relationship between good X and good Y?

Note: Since the original question has more than three subparts, we are going to answer first three…

regression result för your product is shown ifl the table below! Variable Parameter Estimates Standard error Constant -164.0 20.24 Price of good X (P) Price of good Y (P,) -3.50 1.55 2.50 0.28 Per capita Income () 0.45 0.52 R-squared Adjusted R-squared 0.8672 0.8132 F-statistic 15.6893 a) Suppose the average price of 3 units of good X is GH¢12, price of 2 units of goodY is GH¢60, the per capita income of Ghana is GH¢420. Write down the estimated demand equation for your firm's product and interpret the parameter estimates. Determine the quantity of good X sold. Estimate the own price elasticity of demand and state the type of demand curve 1. 11. 111. your firm has? What would be the effect of a price increase on the firm's total revenue? iv. Assess the probable impact on your firm if the firm producing good Y decreases their price by 10%. Explain the adjusted R-squared Is the good X a normal or inferior good? What is the relationship between good X and good Y? V. vi. vii. viii.

regression result för your product is shown ifl the table below! Variable Parameter Estimates Standard error Constant -164.0 20.24 Price of good X (P) Price of good Y (P,) -3.50 1.55 2.50 0.28 Per capita Income () 0.45 0.52 R-squared Adjusted R-squared 0.8672 0.8132 F-statistic 15.6893 a) Suppose the average price of 3 units of good X is GH¢12, price of 2 units of goodY is GH¢60, the per capita income of Ghana is GH¢420. Write down the estimated demand equation for your firm's product and interpret the parameter estimates. Determine the quantity of good X sold. Estimate the own price elasticity of demand and state the type of demand curve 1. 11. 111. your firm has? What would be the effect of a price increase on the firm's total revenue? iv. Assess the probable impact on your firm if the firm producing good Y decreases their price by 10%. Explain the adjusted R-squared Is the good X a normal or inferior good? What is the relationship between good X and good Y? V. vi. vii. viii.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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