Managerial Economic Assignment paper

Use the following demand and supply functions to answer the following.

Equilibrium price and output are

A.	P= $5 andQ= 70.

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B.	P= $11 andQ= 3.32.

C.	P= $12 andQ= 44.

D.	P= $15 andQ= 50.

E.	none of the above

Suppose that the market for salad dressing is in equilibrium. Then the price of lettuce rises. What will happen?

A.	The price of salad dressing will rise.

B.	The supply of salad dressing will decrease.

C.	The demand for salad dressing will decrease.

D.	The quantity demanded of salad dressing will increase.

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

A.	There is a shortage of Orange Bowl tickets at the box office price.

B.	The box office price is higher than the equilibrium price for Orange Bowl tickets.

C.	If the box office price were raised, the excess demand for Orange Bowl tickets would decrease.

D.	bothaandc.

E.	all of the above.

, wherePis the price of goodX,Mis income, andPRis the price of a related good,R.

What is the demand function whenM= $50,000 andPR= $10?

E.	none of the above

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.

The law of demand requires that

a< 0.

b< 0.

P< 0.

D.	a< 0 andb< 0.

E.	b< 0 andP< 0.

The ,Y=a+bX, was estimated. The following computer printout was obtained:

The parameter estimate ofaindicates

A.	whenXis zero,Yis 5.09.

B.	whenXis zero,Yis 15.48.

C.	whenYis zero,Xis -21.36.

D.	whenYis zero,Xis 8.03.

Computer output from estimating the parameters of the nonlinear model

The computer output from the regression analysis is:

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?

A.	All the parameter estimates are statistically significant.

B.	All parameter estimates exceptandare statistically significant.

C.	is not statistically significant, but all the rest of the parameter estimates are significant.

D.	is not statistically significant, but all the rest of the parameter estimates are significant.

11.

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

A.	Y=a+bX+ZXwhereZ=c2

B.	Y=a+ZXwhereZ= (b+c)

C.	Y=a+bZwhereZ=X2

D.	Y=a+ZXwhereZ= (b+c)2

E.	None of the above will work

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.

0.7679%

76.79%

7.679%

7679%

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?

A.	The demand for Houston Rockets’ tickets is price elastic.

B.	The demand for Houston Rockets’ tickets is price inelastic.

C.	The demand for blood donations is price elastic.

D.	The demand for blood donations is price inelastic.

Refer to the following graph:

14.

The price elasticity of demand over the price interval $90 to $110 is

-0.5.

-1.0.

-1.5.

-2.0.

-0.4.

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.

A.	same; increases; larger than

B.	same; decreases; smaller than

C.	same; decreases; larger than

D.	opposite; increases; larger than

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