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5) This question regards Graddy (1995). a. Considering Table 2, column 1, suppose that Graddy had found that the coefficient on Asian was -0.10 and
5) This question regards Graddy (1995). a. Considering Table 2, column 1, suppose that Graddy had found that the coefficient on Asian was -0.10 and the coefficient on Black was 0.06 but that all other results in the paper remained the same. How much lower would Asians pay than whites, in dollar terms, with the new set of coefficients? How much lower would Asians pay than blacks, in dollar terms? b. Fixing the (average) dollar level that whites pay to be the same as that in the paper, how much lower would Asians pay than whites, in percentage terms, given the coefficients in Part (a)? How much lower would Asians pay than blacks, in percentage terms? c. What do you see as the single most likely reason that the fish vendor charges different prices for whiting to different racial groups? Please explain
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