Answer to Question #71419 in Microeconomics for Hamza Ali Khan

Question

Choose a product of your interest to determine the most important determinants of its demand. You need to develop this into a generic demand function of the form
Qx = a0 + a1 Px + a2 I + a3 Py ……
Explain the;
i- Significance of each of the selected variable (include industry specific variables)
Px = Price of ( If price for product X increases in industry then the quantity demanded for product X will decrease due to switching of customers towards substitute )
ii- Sign of each of the coefficients (expected/estimated use some secondary data evidence to support this)
iii- Impact/size of each of the coefficient (expected/estimated use some secondary data evidence to support this)