$$\mathrm { Q } = - 6,500 - 100 \mathrm { P } _ { \mathrm { A } } + 50 \mathrm {~PB} + .3 \mathrm { I } + .2 \mathrm {~A} ; \mathrm { R } ^ { 2 } = .12 , ( 2,500 ) ( 50 ) ( 30 ) ( .1 ) ( .08 )$$
$\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

Question

Quizplus · Accepted Answer

The Answer of $$\mathrm { Q } = - 6,500 - 100 \mathrm { P } _ { \mathrm { A } } + 50 \mathrm {~PB} + .3 \mathrm { I } + .2 \mathrm {~A} ; \mathrm { R } ^ { 2 } = .12 , ( 2,500 ) ( 50 ) ( 30 ) ( .1 ) ( .08 )$$
$\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