Question

1.

1.A firm’s demand curve is given by Q = 200 – 0.5P, where P = price and Q = quantity. Therefore, its inverse demand equation is:

P = 400 – .5Q

P = 800 – .5Q

P = 100 – 0.25Q

P = 400 – 2Q

P = 200 – 2Q

2. Given a linear demand function of the form Q_X^d = 500 − 2P_X − 3P_Y + 0.01M, find the inverse demand function (Px = ) assuming M = 10,000 and P_Y = 10.

Px = 630 - 0.5Qx

Px = 365 − 0.5Qx

Px = 500 − 2Qx

Px = 630 - 2Qx

Px = 315 − 2Qx

3. Suppose the demand for good X is given by Q^d_x = 10 − 2P_x + 4P_y + I. If the price of good X (Px) is $8, the price of good Y (Py) is $10, and income (I) is $100, how much of good X will be purchased? (Please show your work)

4.Computing the F-statistic allows one to:

test the overall statistical significance of the regression equation.

determine which variable contributes the most explanatory power to the regression.

predict the increased explanation of any additional variables that might be included.

measure the forecasting accuracy of the regression equation.

measure the degrees of freedom in the regression.

5.Chara has an incoming GPA of 3.5, uses Facebook 5 hours per week, and is a junior (2 years of completed college). Using Table 1, forecast her score. (show Work)

Thank you!!

Answer 1