The demand for good X is given by lnQX d = 120 – 0.9 lnPX + 1.5 lnPY – 0.7 lnM. Which of the following statements is correct?
Multiple Choice Quizzes with Answer in English (Page: 411)
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 remained at $3 billion annually. This data indicates that:
The management of Local Cinema has estimated the monthly demand for tickets to be lnQ = 22,328 – 0.41 lnP + 0.5 lnM – 0.33 lnA + 100 lnPvcr, where Q = quantity of tickets demanded, P = price per ticket, M = income, A = advertising outlay, and Pvcr = price of a VCR tape rental. It is known that P = $5.50, M = $9,000, A = $900, and Pvcr = $3.00. Based on the information given, which of the following statements is false?
The management of Local Cinema has estimated the monthly demand for tickets to be lnQ = 22,328 – 0.41 lnP + 0.5 lnM – 0.33 lnA + 100 lnPvcr, where Q = quantity of tickets demanded, P = price per ticket, M = income, A = advertising outlay, and Pvcr = price of a VCR tape rental. It is known that P = $5.50, M = $9,000, A = $900, and Pvcr = $3.00. Determine the own-price elasticity of demand for movie tickets
The price elasticity of demand is -2.0 for a certain firm’s product. If the firm raises price,the firm manager can expect total revenue to
Each week Bill buys exactly 7 bottles of cola regardless of its price. Bill’s own price elasticity of demand for cola in absolute value is:
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:
When the own price elasticity of good X is -3.5 then total revenue can be increased by
The manager can be 95% confident that the true value of the underlying parameters in a regression is not zero if the absolute value of t-statistic is
The lower the standard error,
For a given set of data and regression equation, the greater the R-square
Non-fed ground beef is an inferior good. In economic booms, grocery managers should
Suppose the income elasticity for transportation is 1.8. Which of the following is anincorrect statement?