Business, 06.12.2020 14:00 gabriella80

The estimated market demand for good X is Q = 70 - 3.5P - 0.6M + 4PZ where Q ˆ is the estimated number of units of good X demanded, P is the price of the

good, M is income, and PZ is the price of related good Z. (All parameter estimates are
statistically significant at the 1 percent level.)
a. Is X a normal or an inferior good? Explain.
b. Are X and Z substitutes or complements? Explain.
c. At P = 10, M = 30, and PZ = 6, compute estimates for the price (E ˆ), income (E ˆ M), and
cross-price elasticities (E ˆ XZ).

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 00:00

Which of the following is a disadvantage to choosing a sole proprietorship business structure? question 9 options: the owner has personal responsibility for the company's liabilities. the owner has to share the profits with partners. the owner is still liable for personal debts. the owner has to report to shareholders.

Answers: 1

Answer

Business, 22.06.2019 12:20

Consider 8.5 percent swiss franc/u.s. dollar dual-currency bonds that pay $666.67 at maturity per sf1,000 of par value. it sells at par. what is the implicit sf/$ exchange rate at maturity? will the investor be better or worse off at maturity if the actual sf/$ exchange rate is sf1.35/$1.00

Answers: 2

Answer

Business, 22.06.2019 18:00

Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less

Answers: 1

Answer

Business, 22.06.2019 23:30

As a result of a thorough physical inventory, waterway company determined that it had inventory worth $320200 at december 31, 2020. this count did not take into consideration the following facts: walker consignment currently has goods worth $47400 on its sales floor that belong to waterway but are being sold on consignment by walker. the selling price of these goods is $75900. waterway purchased $21900 of goods that were shipped on december 27, fob destination, that will be received by waterway on january 3. determine the correct amount of inventory that waterway should report.

Answers: 2

Answer

You know the right answer?

The estimated market demand for good X is Q = 70 - 3.5P - 0.6M + 4PZ where Q ˆ is the estimated num...

Questions