Search & Filtering
Consider the regression output below for the relationship between price (X) and quantity demand for refrigerators in South Africa:
ln(y) = 10.58 — 0.23 ln(x)
𝑅2 = 0.38 N=28
(i) Write the original equation before it was transformed into log form. (2)
(ii) Which assumption is violated in this equation and why? (3)
(iii) What does the b2 coefficient measure in models of this nature? (2)
(iv) Interpret the b2 coefficient in the above equation and state whether it is in line with
economic theory. (3)
(v) Test the hypothesis that b2 =0 at the 5% level of significance. (6)
(vi) Test the hypothesis that 𝑅2 =0 at the 5% level of significance (i.e, F-test). (7)
(vii) Calculate the adjusted 𝑅2 and explain why it is always less than the normal 𝑅2.
Instructions: Research on the assigned topic assigned to you.
Assigned topic : COOPERATIVES
Search for the following :
1. Existing business / enterprises in the Philippines.
2. Laws regulating these forms of business enterprises.
3. Straight facts.
Why is it important that South Africa should be consideration of USA’s decisions
when deciding on its monetary policy stance?
Macroeconomics book page 500. Essay case "Dinning in dollars in Argentina" three questions.
five challenges to the South African economic growth
A person’s utility function is of the form U(x,y) = 5xy. The prices of good x and y are Px = $4 and Py = $2, respectively. The person’s income is $1200.
(a) Show that these preferences are homothetic?
(b) What quantities of x and y should the consumer purchase to maximize his
utility?
(c) Determine the person’s income offer curve (IOC). Draw it.
(d) Explain whether each of the two goods is normal or inferior.
(e) Derive the Engel curve for x. Draw it.
Neville's passion is fine wine. When the prices of all other goods are fixed at current levels, Neville's demand function for high-quality claret is Q = .02M – 2P, where M is his income, P is the price of claret (in British pounds), and Q is the number of bottles of claret that he demands. Neville's income is 7500 pounds, and the price of a bottle of suitable claret is 30 pounds.
(a) How many bottles of claret will Neville buy?
(b) If the price of claret rose to 40 pounds, how much income would Neville
have to have in order to be exactly able to afford the amount of claret and the amount of other goods that he bought before the price change?
(c) At the income level you mentioned in part (b) and the higher price of claret of 40 pounds, how many bottles would Neville buy?
(d) At the original income of 7500 pounds and a price of 40, how much claret would Neville demand?
(e) Decompose the total price effect into the substitution and income effect.
d. Assuming the game is one-shoot game and Firm 1 moves first represent it in
extended form.
Do each of a-d, both geometrically (you need not be precise) and using calculus. There are only two goods; x is the quantity of one good and y of the other. Your income is I and u(x,y) = xy + x + y.
(a) Px = $2; Py = $1; I = $15. Suppose Py rises to $2. By how much must I increase in order that you be as well off as before?
(b) In the case described in part (a), assuming that I does not change, what quantities of each good are consumed before and after the price change? How much of each change is a substitution effect? How much is an income effect?
(c) Px = $2; I =$15. Graph the amount of Y you consume as a function of Py , for values of Py ranging from $0 to $10 (your ordinary demand curve for Y).
(d) With both prices equal to $1, show how consumption of each good varies as I changes from $0 to $100.
Robinson's preferences between apples (a) and bananas (b) are expressed by the following:
U = (a+2)0.5(b+1)0.5
(a) Show that Robinson's indifference curves are negatively sloped.
(b) Are they convex to the origin? Explain.
#331389 on Nov 2022