You experiment by offering free warranties for your product in market A but not in market B. Sales in A rise from 240 to 360 units per week while sales in B rise from 410 to 430 . The Difference-in-difference estimate of the effect of the free warranty is:

a. 80 units
b. 100 units
c. 120 units
d. 140 units


b

Economics

You might also like to view...

Which of the following is considered a financial intermediary?

a. The Federal Reserve b. A bankruptcy court c. The U.S. Department of Commerce d. A credit union e. A foreign exchange

Economics

Which one of the following groups benefits from inflation?

a. Landlords b. Borrowers c. Savers d. Lenders

Economics

Excess reserves fuel the deposit expansion process, and a lower reserve requirement drains this fuel from the banking system, thereby reducing the amount of new money in that can be created

Indicate whether the statement is true or false

Economics

If the interest rate rises and the supply of dollars in the market for foreign currency exchange shifts left, then the price must have

a) dropped by less than 10 percent. b) remained constant. c) risen. d) dropped by more than 90 percent.

Economics