Demand Analys
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Title: Demand Analys

Essay Details:

Subject: Business
Author: Janice G
Date: August 6, 2013
Level: University
Grade: A
Length: 2 / 302

Essay text:

Indicate whether you expect each independent or explanatory variable to be directly or inversely related to the quantity demanded of Chevrolets and the reason for your expectation. 2. Suppose that GM's Smith estimated the following regression equation for Chevrolet automobiles: Qc = 100,000 - 100Pc + 2,000iV + 50/ + 3QPF -1,000/>g + 3A + 40,000/*, where Qc = quantity demanded per year of Chevrolet automobiles Pc = price of Chevrolet automobiles, in dollars N = population of the United States, in millions/ = per capita disposable income, in dollars Pf = price of Ford automobiles, in dollars Pc = real price of gasoline, in cents per gallon A = advertising expenditures by Chevrolet, in dollars per year Pi = credit incentives to purchase Chevrolets, in percentage points below the rate of interest on borrowing in the absence of incentives a) Indicate the change in the number of Chevrolets purchased per year (Qc) for each unit change in the independent or explanatory variables, b) Find the value of Qc if the average value of Pc = $9,000, N = 200 million, / = $10,000, PF= $8,000, PG = 80 cents, A = $200,000, and if Pi m I...

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