$\text {where \(Q\) is the quantity demanded of good \(A ; P A = \$ 10\), price of good \(A ; P _ { B } = \$ 8\), price of good }$

question 4

Multiple Choice

$$\mathrm { Q } = - 6,500 - 100 \mathrm { P } _ { \mathrm { A } } + 50 \mathrm {~PB} + .3 \mathrm { I } + .2 \mathrm {~A} ; \mathrm { R } ^ { 2 } = .12 , ( 2,500 ) ( 50 ) ( 30 ) ( .1 ) ( .08 )$$
$\text {where \(Q\) is the quantity demanded of good \(A ; P A = \$ 10\) , price of good \(A ; P _ { B } = \$ 8\) , price of good }$
$\text {\(B ; I = \$ 12,000\) , per capita income; and \(A = \$ 20,000\) , monthly advertising expenditures.}$
-As the manager of good A,which of the following would be of greatest concern (based on the regression results above) ?

• A)None of the factors below would be of concern.
• B)an impending recession
• C)pressure on you by your salespersons to lower the price so that they can boost their sales
• D)a price reduction by the makers of good B

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Definitions:

Charges

Fees or prices asked for goods and services provided.

Energy Tax Credit

A government incentive that reduces the tax bill of individuals or businesses that make energy-efficient improvements or investments.

Heat Pump

A device that transfers heat energy from a source of heat to what is called a thermal reservoir, commonly used for heating and cooling buildings.

Watts

A unit of power in the International System of Units (SI) that measures the rate of energy transfer or conversion.