The estimated demand for a good is
= 25 - 5P + 0.32M + 12PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. The coefficient on P
A. should have the same sign as the coefficient on PR.
B. is negative as expected.
C. does not have the expected sign.
D. should not be greater than one (in absolute value).
E. both b and d
Answer: B
You might also like to view...
Discuss whether or not a competitive, profit-maximizing firm would ever cease hiring workers if the marginal product of the next worker is higher than that of the last worker hired (that is, the firm is on the increasing portion of its marginal product curve).
What will be an ideal response?
Regarding the regional distribution of population,
(a) New England as a whole continued to increase in its population base faster than the Middle Colonies throughout the colonial period. (b) Virginia had the smallest population of any colony at the time of the Revolution. (c) at the end of the colonial period, nearly half the total colonial population resided in the five Southern colonies. (d) the distribution remained firmly concentrated in what is now called the thirteen original colonies.
A $130,000 investment in new equipment this year will increase your firm's profits by $50,000 in each of the next 3 years. What is the net present value of this investment if your firm's opportunity cost of capital is 10 percent?
A) -5,657 B) 5,657 C) 124,343 D) 128,850
The degree of operating leverage is equal to the ____ change in ____ divided by the ____ change in ____
a. percentage; sales; percentage; EBIT b. unit; sales; unit; EBIT c. percentage; EBIT; percentage; sales d. unit; EBIT; unit; sales e. none of the above