ZuoTi.Pro
Question

The following is the log linear demand function for raincoats (X) lnQx = 10 – 1.2...

The following is the log linear demand function for raincoats (X)

lnQx = 10 – 1.2 lnPx + 3 lnR – 2 lnAy

where R = daily amount of rainfall    and    A = level of advertising for umbrellas (Y)

Calculate the impact on demand for raincoats if there is a 7% increase in the daily amount of rainfall?    

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

InQx=10-12/n Pq+ 3ln R -2 (n Differentiate both Sides Loth respect to R 2Qx OR Ay. %3D %3D Qx %3D3 OR Qr A in Qy %% A in R 3

0 0
Add a comment
Know the answer?
Add Answer to:
The following is the log linear demand function for raincoats (X) lnQx = 10 – 1.2...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • You are the manager of Firm-X and must analyze an estimated log-linear demand function for your...

    You are the manager of Firm-X and must analyze an estimated log-linear demand function for your firm’s product (any product). Assume that the R-squared for the estimated regression is 0.80. So, Write out an estimated log-linear demand function that includes the relevant factors that affect the demand for your product (make up the estimated coefficients and their standard errors for the own price of the product and the other factors that affect the demand for your product). Below the estimated...

  • QUESTION 19 Suppose you estimated the demand function of good Xin log-linear form and you obtained...

    QUESTION 19 Suppose you estimated the demand function of good Xin log-linear form and you obtained the following LnQ = 120 - 1 51nP + 12InADV where a quantity. Px price, and ADV advertising expenditures. Based on the results, you can predict that if advertising expenditure increases by 10% quantity demanded of by other things remaining the same and all the explanatory variable are statistically significant decreases, 15 units increases 120 units decreases, 120 units increases by 120%

  • Suppose the following is an estimated log-linear demand function: ln Q = 8.99 – 3.78 ln...

    Suppose the following is an estimated log-linear demand function: ln Q = 8.99 – 3.78 ln P – 1.77 ln M – 2.03 ln PR All parameter estimates are significant. 1) Is this good a normal or an inferior good? 2) Is this good a complement of or substitute for the related good? 3) What is the price elasticity of demand for this good? 4) What is the income elasticity of demand for this good?

  • Question 5 1 pts Find the formula for the demand function for a (x as a...

    Question 5 1 pts Find the formula for the demand function for a (x as a function of P.) when U(x, y) = 3:0.25.0.75, and M = 20 Impossible to determine without knowing Py • r = 0.25% Question 6 1 pts Imagine you work at Nike estimating the demand for shoes. Your boss tells you that due to new import tariffs, you need to increase the price of your product by 20%. She asks you to calculate what the...

  • Assume the following log-linear supply function for coffee beans: ln Qs = 20 + 1.5 ln...

    Assume the following log-linear supply function for coffee beans: ln Qs = 20 + 1.5 ln P +4.6 Ln T + 2.6 ln F where P is the price of coffee beans, T is technology and F is the number of coffee bean growers. If the number of growers increases by 10%, by how much will coffee supply increase?

  • 1. Chuck has the following quasi-linear utility function: a) Derive Chuck's demand curve for x as...

    1. Chuck has the following quasi-linear utility function: a) Derive Chuck's demand curve for x as a function of P,and P b) Derive Chuck's demand for for y c) Is y a normal good?

  • An individual's demand for X is given by the following function: X = 300 - 4P+0.01M,...

    An individual's demand for X is given by the following function: X = 300 - 4P+0.01M, where M is the consumer's income and P is the price of X. Suppose M = $2000, and P increases from $10 to $13. (a) Calculate the total change in demand. (2 marks) (b) Calculate the change in income needed to compensate the individual for a price increase. (2 marks) c) Calculate the change in demand because of substitution and income effects. (4 marks)...

  • Number 3 please 1. Diaw some Boquants for this production function (1.2) = min {x1 +...

    Number 3 please 1. Diaw some Boquants for this production function (1.2) = min {x1 + x2, 2x2). (6 points) 2. Consider this production function f(x1,x2) = x, + x,. Does it exhibit decreasing, constant, or increasing returns to scale? (6 points) 3. A competitive firm has the production function y=Z, where y is the quantity of output and Z the amount of labor used. (a) Suppose the hourly wage rate for labor is w = $10 and the price...

  • 6. Find the value of y a. log, 3) = y b. log, = y log...

    6. Find the value of y a. log, 3) = y b. log, = y log (1125) = y d. 10° = y 15 =y 1 e 50 9. 200 7. Given the function and t f(0) = 2 g(x) = 5* Draw the 2 function. Which one grows faster with increasing & 8. Plot f(x) = log, (x) = y log2 (L) =y and g(x) =

  • QUESTION 14 QUESTION 13 Rewrite log 2(3x 4) using the properties of logarithms Simplify 9 log83+logsx...

    QUESTION 14 QUESTION 13 Rewrite log 2(3x 4) using the properties of logarithms Simplify 9 log83+logsx o log 2(12)+ log 20x) o log 2 (3)+ log 40x) log 2 (3)+4log 20x) as much as possible 6+4log 2(x) 3, ,1.67 14 2 QUESTION 18 げa linear demand function is q =-2p + 30" where q is quantity and p is price, find the m erse demand (or price) function. Hint: you want to end up with an equation of the form...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT