Question
An estimate of the demand function for household furniture produced the following results: F=0.0036Y^1.08 R^0.21 P^(0.56) r^2=0.996 where F= furniture expenditures per household Y= disposable
An estimate of the demand function for household furniture produced the following results:
F=0.0036Y^1.08 R^0.21 P^(0.56) r^2=0.996
where
F= furniture expenditures per household
Y= disposable personal income per household
R= value of private residential construction per household
P= ratio of the furniture price index to the consumer price index
The point price elasticity for household furniture is _______, and the income elasticity is________.
According to the estimated model, a 10 percent increase in the value of private residential construction per household __________the quantity demanded by ____________percent.
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