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Answer to Question #22615 in Economics of Enterprise for Christyharris
Question #22615
. An estimate of the demand function for household furniture produced the following results: F = 0.0036Y1.08R0.16p-0.48 r2 =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
a) Determine the point price and income elasticity’s for household furniture.
a) Determine the point price and income elasticity’s for household furniture.
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