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The demand for Habesha beer in Addis Ababa is hypothesized to be determined by price of beer (PRICE), Price of all other goods (OTHERSPR), Income (INC) and per capita advertising (ADVERT). And the OLS estimation result is given by
DD= -5463+0.3643 PRICE-0.15439 OTHERPR+0.8892 INC+0.0831 ADVERT
(11.2225)(1.7141)(1.0895)(6.7752)(2.6327)
R^2=0.950
DW statistics=1.716
a. Interpret the estimation result
b. What is the meaning of the R2?
c. What will happen to the demand of Habesha beer if the average income of the community is increased by 1000 birr?
1) Suppose the average revenue of a short run perfectly competitive firm is 2 and its Marginal cost and fixed cost is given as: MC=3Q2 -8Q+6 and TFC=10 then,
A. Derive the function of TC, AVC and TR
B. Calculate equilibrium price and quantity
C. Find the profit at the equilibrium point and identify whether the firm makes positive profit, normal profits or incurs loss.
D. What price is needed for the firm to stay in the market?
equity account increased by 1 million and liabilities fell by 2 million then assets would be what amount?
True or False: The three major forms of business ownership are (1) sole proprietorships,
(2) partnerships, and (3) co-operatives.
What do you mean by envelop curve.explain with the help of optimum plant size.
What is NDP? Is it a better or worse measure of output than GDP? Explain.
Country A can produce either 2 tons of cocoa or 4 cars with 10 units of labor. Country B can produce either 5 tons of cocoa or 25 cars with 10 units of labor. Based on this information, which of the following is true?
Question: Identify what happens to equilibrium price and quantity in each of the following cases:
a. Demand rises and supply is constant
b. Demand falls and supply is constant
c. Supply rises and demand is constant
d. Supply falls and demand is constant
e. Demand rises by the same amount that supply falls
f. Demand falls by the same amount that supply rises
g. Demand falls by less than supply rises
h. Demand rises by more than supply rises
i. Demand rises by less than supply rises
j. Demand falls by more than supply falls
How does state bank use interest rate to control economy?
Paul lends R10000 to his friend steven for one. They agree that steven would pay the R10000 back with 5% interest at the end of the year. If the inflation rate is 6% at the end of the year, which of the following would be true for the real value of the amount that steven pays back?
