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28 Sep 2019
Jose's taco emporium completed a study of weekly demand for its tacos in 3 of their establishments. The study showed:
Qx = 56000 - 2000Px + 5000pop + 1000Py *t-stat at 0.05, R2=.95
2.39* 3.5* 3.67* 2.6
Where Qx = taco demand
Px = taco price in dollars, POP= population in 4 mile radius (in thousands), Py = price index of competitor tacos in dollars
At this time a typical store had Px=$5, POP= 10000, Py=$4
1. What is the demand faced by an average Jose's taco emporium?
2. What is price point elasticity for Jose's tacos?
3. What is cross price elasticity of demand faced by a typical Jose's taco emporium?
Jose's taco emporium completed a study of weekly demand for its tacos in 3 of their establishments. The study showed:
Qx = 56000 - 2000Px + 5000pop + 1000Py *t-stat at 0.05, R2=.95
2.39* 3.5* 3.67* 2.6
Where Qx = taco demand
Px = taco price in dollars, POP= population in 4 mile radius (in thousands), Py = price index of competitor tacos in dollars
At this time a typical store had Px=$5, POP= 10000, Py=$4
1. What is the demand faced by an average Jose's taco emporium?
2. What is price point elasticity for Jose's tacos?
3. What is cross price elasticity of demand faced by a typical Jose's taco emporium?
Retselisitsoe PokothoaneLv10
28 Sep 2019