ECON103 D100 Midterm1A Summer2013

Project two in ECON-E 281 - APPLIED STAT FOR BUS & ECON II consisted of the students evaluating three independent variables such as Pickup Time, Delivery Time, and Mileage. The dependent variable was Cost. Only one independent variable could be selected when applying “ONLY” the p-value approach. The first step, I selected the Data then the Data Analysis tool. Next select Regression. The Input Y Range I selected the Cost data. The Input X range I selected the first independent variable Pickup time. Then check marked the boxes Labels, Confidence Level 95%, New Worksheet Ply, Residuals, and Residuals Plots. After checking the boxes I pressed OK. This gave me my first regression model. I used this process for the next two independent variables

General Instructions: • Write your name and student ID clearly above. • You have 1 hour and 15 minutes to write the exam. No extra time will be given. • There are 4 questions in the exam, all with subparts. The questions combine for a maximum of 100 points. • You must write your answers clearly in the space provided for each question. You might use the backside of each page, as well as any additional sheets as required. If you are using additional space, you must clearly label the question no. that you are answering. Any loose sheets must have your name and student ID written clearly. • The exam is open book/open notes, however,

a. We were already lagging behind the market to begin with. Unless we give an increase in the basic

Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page

Please number each question clearly in the exam book. You have until the Thursday, May 14th at 12:30pm to submit your answers via Dropbox. After this time, Dropbox will shut down and you are screwed. Feel free to type out your answers in each question section.

This examination is worth 20 percent of your total grade. There are five questions, and the maximum point values are included with each question.

Total Number of Questions: 10 Instructions: 1. 2. All questions are to be answered directly onto the examination paper. This examination consists of 17 pages, excluding the cover page. Materials Permitted:

b. The good results in Columbia were due to sampling, significant price discounts and couponing- can’t keep this

have a 90 minutes to complete the exam. The exam will cover all topics from the course. A

T 's Jean Shop sells designer jeans. The latest trend setter has been Capri cuffed blue jeans. The demand for the Capri jeans has been very high with teenagers and young women. The business has increased its supply of Capri jeans due to the high demand. The owner, Terri Johnson, contemplates increasing the price from $9.00 to $10.00. Ms. Johnson needs to know the response of the consumers to the increased price. According to McConnell and Brue (2004), the Price Elasticity of Demand measures the rate of response of quantity demanded due to a price change (p. 1).

Ep equal to neg 1.19 (absolute 1.19) implies that in the short run, the demand is price elastic. Thus a 1% increase in price will decrease demand by 1.19%. However, in the long term, consumers will find substitutes if the price continues to increase.

Which of the following statements is correct for a society that emphasizes the production of capital goods over consumer goods?

Consumers and economists use the concept of elasticity to measure how an economic variable responds to changes in another economic variable (Hubbard & O’Brien, 2010, p. 168). Supply and demand go together and play an important part in price elasticity. “Price elasticity of demand is the responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the product’s price” (Hubbard & O’Brien, 2010, p. 168). Price of elasticity of supply is similar

Introduction: The business analysts put forth a great deal of subjective expressions about how consumers as well as producers carry on. The law of demand expresses that the good quantity that is demanded or services for the most part declines, and the law of supply expresses the quantity of the good which is produced has a tendency to increase at the business sector cost of that increase in good. These laws don 't catch everything that financial analysts might want to think about the supply and demand model, so they created quantitative estimations, for example, flexibility to give more insight about business sector conduct.

2. When the income of a consumer was Rs. 24,000/-, he was demanding 20 units of a commodity. Now his income has gone up to Rs. 28,000/- and the demand for the same product has gone down to 15 units. Calculate income elasticity of demand and comment on the answer.