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Midterm Exam in Managerial Economics

# Midterm Exam in Managerial Economics - Problem 1 The annual...

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Problem 1: The annual demand for green onion in Hawaiii is shown below: Quantity Price 123 105.3 120 105.8 123 99.3 134 90.5 134 86 127 86.3 Note: the first summary output on the 118 86.8 car problem is not correct. 114 86.2 120 87.5 131 87.6 77 99.7 78 115.3 89 105 106 109.2 111 102.5 122 102.3 124 97.5 123 97 122 88.4 114 87.4 126 91 122 92.1 118 94.2 123 95.1 Questions 1. Find the demand equation 2. Find the price and quantity that maximizes total revenue 3. Find the price elasticity in (2) above 4. Compare the actual and the estimated price 5. If you buy 100 thousand pounds at wholesale, what percentage mark up would you apply to maximize your profit 80 100 120 140 f(x) = -0.33x + 134.19 Column C Linear Regres-

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Q 203.27 Price 67.13 3 e -1 2. The demand for new passenger cars in u.S are as follows CPI DPI in Interest Emp. In Nes Cars in percent bil dols in pct 1000 Sold X1 X2 X3 X4 Y y' 1971 121.3 776.8 4.89 79367 10227 9819.84 1972 125.3 839.6 4.55 82153 10872 10361.9 1973 133.1 949.8 7.38 85064 11350 10499.38 1974 147.7 1038.4 8.61 86794 8775 9981.02 1975 161.2 1142.8 6.16 85846 8539 9767.16 1976 170.5 1252.6 5.22 88762 9994 10289.34 1977 181.5 1379.3 5.5 92017 11046 10669.6 1978 195.4 1551.2 7.78 96048 11164 10956.74 1979 217.4 1729.3 10.25 98824 10559 10414.74 1980 246.6 1918 11.28 99303 8979 9215.81 70 80 90 100 110 120 130 140 0 20 40 60 Linear Regres- sion for Column C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 0 20 40 60 80 100 120 140 Column C
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Midterm Exam in Managerial Economics - Problem 1 The annual...

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