.  Use the following demand and supply functions to answer the following. Equilibrium price and output are
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2.  Suppose that the market for salad dressing is in equilibrium. Then the price of lettuce rises. What will happen?

3.  Suppose that more people want than the number of tickets available. Which of the following statements is correct?

, wherePis the price of goodX,Mis income, andPRis the price of a related good,R. 
4.  What is the demand function whenM= $50,000 andPR= $10?

The general linear demand function below is used to answer question whereQd= quantity demanded,P= the price of the good,M= income,PR= the price of a good related in consumption. 
5.  The law of demand requires that

The ,Y=a+bX, was estimated. The following computer printout was obtained: 
8.  The parameter estimate ofaindicates

Computer output from estimating the parameters of the nonlinear model The computer output from the regression analysis is: 
9.  The nonlinear relation can be transformed into the following linear regression model:

10.  Which of the parameter estimates are statistically significant at the 90% level of confidence?

11.  The quadratic equationY=a+bX+cX2 can be estimated using linear regression by estimating

A manager wishes to estimate an average cost equation of the following form: whereQis the level of output. LettingZ=Q2 and , the manager obtains the following computer output: 
12.  The value ofR2 indicates that _______ of the total variation inCis explained by the regression equation.

13.  Suppose that the Houston Rockets’ management is considering a plan in which fans who donate blood can attend games for $35 instead of the usual $40. If both ticket revenues and blood donations rise with this plan, which of the following is true?

Refer to the following graph: 
14.  The price elasticity of demand over the price interval $90 to $110 is

15.  Suppose price rises from $90 to $110. Total revenue moves in the ________ (same, opposite) direction as the dominant effect. In this case, (increases, decreases, stays the same) because the quantity effect is _________ (larger than, smaller than, the same as) the price effect.
