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Managerial Economics - A Problem-Solving Approach

Nick Wilkinson

Chapter 4

Demand estimation - all with Video Answers

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Chapter Questions

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Problem 1

Explain the problems for government policy if it tries to use supply-oriented policies rather than demand-oriented ones in trying to discourage the consumption of certain products.

Rashmi Sinha
Rashmi Sinha
Numerade Educator
01:26

Problem 1

Explain the advantages of using multiple regression compared with simple regression.

Arwa Ali
Arwa Ali
Numerade Educator
05:55

Problem 2

Explain the significance for economic theory of the relationship between price and perceived quality.

Puneet Prajapati
Puneet Prajapati
Numerade Educator

Problem 2

Explain the nature of the identification problem, and how it relates to demand relationships.

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07:47

Problem 3

Analyse the effects on the demand for cars of the following:
a. A higher tax on gasoline
b. A tax on car parking
c. Increased automation on subways
d. Government legislation for increased safety in cars, like side impact protection
e. A 'congestion' tax imposed on cars using certain routes at certain times.

Ansh Varma
Ansh Varma
Numerade Educator
03:57

Problem 3

Explain the nature of dummy variables and their use in regression analysis.

Julie Silva
Julie Silva
Numerade Educator

Problem 4

Select a company from the FT.com website and analyse the factors affecting its demand according to the categories described in this chapter.

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01:31

Problem 4

Explain the importance of correct model specification.

Sri Datta Vikas Buchemmavari
Sri Datta Vikas Buchemmavari
Numerade Educator
01:31

Problem 5

Referring to Table 3.4 showing empirical estimates of price elasticities, draw some general conclusions relating to the products involved. Identify any apparent anomalies in the table and give some possible explanations.

Niamat Khuda
Niamat Khuda
Numerade Educator
01:01

Problem 5

Explain the difference between demand estimation and demand forecasting.

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator
02:32

Problem 6

Referring to Table 3.6 for income elasticities, repeat the procedure in the previous question.

Chai Santi
Chai Santi
Numerade Educator

Problem 6

What is meant by the price-quality relationship? What are its implications?

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01:31

Problem 7

Explain why lagged variables are useful in analysis.

Prashant Bana
Prashant Bana
Numerade Educator
05:07

Problem 8

Explain how you would perform an empirical study to investigate the factors affecting house prices in Kensington, London, using the www.findaproperty. com site.

Rashmi Sinha
Rashmi Sinha
Numerade Educator