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Need help with this question, please. The following linear demand specication is estimated for Conlan Enterprises. a price- setting rm: Q=a+bP+cM+dPR where Q is the
Need help with this question, please.
The following linear demand specication is estimated for Conlan Enterprises. a price- setting rm: Q=a+bP+cM+dPR where Q is the quantity demanded of the product Conlan Enterprises sells. P is the price of that product. M is income. and PR is the price of a related product. The results of the estimation are presented below: DEPENDENT VARIABLE: Q R-SQUARE F-RATIo P-VALUE ON F OBSERVATIONS: 32 0.7984 36.14 0.0001 VARIABLE PARAMETER STANDARD T- P- ESTIMATE ERROR RATIO VALUE INTERCEPT 846.3000 767000 11.03 0.0001 P 8.6000 2.6000 3.31 0.0026 M 0.0184 0.0048 3.83 0.0007 PR 4.3075 1.2300 3.50 0.0016 Given the above. based upon the parameter estimates in the above table 0 the related good is a complement. O the related good is a substitute. 0 this good is a normal good. Given the above. based upon the parameter estimates in the above table 0 the related good is a complement. O the related good is a substitute. 0 this good is a normal good. 0 "this good is a normal good" and "the related good is a complement". 0 "this good is a normal good\" and "the related good is a substitute"Step by Step Solution
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