The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:Q = a + bP +cM +dPRwhere Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and PR is the price of a related product. The results of the estimation are presented below: Given the above, at the 1% level of significance, which estimates are statistically significant?

A. Only a?, b, and c? are statistically significant
B. All are statistically significant
C. Only a? is statistically significant
D. All but a? are statistically significant
E. All but b and d are statistically significant


Answer: B

Economics

You might also like to view...

If customer discrimination does not exist, firms that discriminate on the basis of race or sex will

A) have higher costs than those that do not. B) have the same level of costs as those that do not. C) have lower costs than those that do not. D) tend to survive whereas firms that do not discriminate will tend to fail.

Economics

In general, activists are ________ about the ability of fiscal and monetary policies to stabilize AD and non-activists are ________

A) pessimistic; optimistic B) optimistic; optimistic C) pessimistic; pessimistic D) optimistic; pessimistic

Economics

The principle of comparative advantage implies that

A. most people are harmed by trade. B. we should limit the extent to which people specialize. C. only wealthy countries ultimately can benefit from international trade. D. every country can benefit from international trade.

Economics

Which of the following is NOT an asset of commercial banks?

A. home mortgages B. business loans C. savings deposits D. consumer loans

Economics