$\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:

Comparative Performance

The process of comparing the performance metrics of different securities, investments, or portfolios to benchmark or industry standards.

Fund Managers

Professionals who manage investment funds, making decisions about which securities to buy or sell in order to achieve the investment objectives of the fund.

Rate of Return

Returns or drawbacks experienced in an investment over an established period, articulated as a percentage of the investment's outlay.

Calculating

The process of determining a quantitative answer or figure through mathematical operations or procedures.