1. If the mean values of Pc, Qc, M, and PA 250, 5,000, 25,000, and 300, calculate the priceelasticity, cross-price elasticity, and income elasticity of demand for cement. Explain thesefigures.2. Write the resulting regression equation Given: The ATV Company produces a specialty cement used in the construction of roads. ATV is aprice-setting firm and estimates the demand for its cement using a demand function in the linear form:Q=f( Pc, M, PA)where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M= country's taxrevenues per capita, and PR = the price of asphalt per yard. The manager of ATV obtained the followingresults in her attempt to estimate the demand for cement in the succeeding months. The results arepresented below:%3DDEPENDENTR- SQUAREF-RATIOQcP-VALUE ON FVARIABLEOBSERVATIONS640.809384.8720.0001Р-T-VARIABLEPARAMETER ESTIMATE STANDARD ERRORVALUERATIOINTERCEPT8.204.012.040.0461Pc-3.541.64-2.160.0357M0.642870.193.380.0014PA0.78540.382.070.0439

Regression Equation: Dependent Variable: Qc Independent Variable: Pc, M, Pa This is a multiple…

1. If the mean values of Pc, Qc, M, and PA 250, 5,000, 25,000, and 300, calculate the price elasticity, cross-price elasticity, and income elasticity of demand for cement. Explain these figures. 2. Write the resulting regression equation

1. If the mean values of Pc, Qc, M, and PA 250, 5,000, 25,000, and 300, calculate the price elasticity, cross-price elasticity, and income elasticity of demand for cement. Explain these figures. 2. Write the resulting regression equation

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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