Search for question from various european universities around the world
Question-
Estimate of the demand function for household furniture
F = 0.0036Y^1.08*R^0.16*P^-0.48
R^2 = 0.996
Where:
F=furniture expenditures per household
Y=disposable personal income per household
R=value of private residential construction per household
P=ratio of the furniture price index to the consumer price index
1. Determine the point price and income elasticities for household furniture.
2. What interpretation would you give to the exponent for R? Why do you suppose R was included in the equation as a variable?
3. If you were a supplier to the furniture manufacturer, would you have preferred to see the analysis performed in physical sales units rather than dollars of revenue? How would this change alter the interpretation of the price coefficient, presently estimated as - 0.48?
Experts are helping students not just improving grades but also to provide better learning of subject concepts and its problem statements. They are providing you world class assistance which may help you to excel in course or assignments.
Looking tutor’s service for getting help in UK studies or college assignments? Order Now