2009_sem_1_tutorial_5

# 2009_sem_1_tutorial_5 - ECON0701 Tutorial 5 Question 1 2009...

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ECON0701 Tutorial 5 2009 Sem 1 Angela Mak Question 1 a) For 1 unit increase in average games played per year (gamesyr), on the average percentage change in salary is % 100 2 , holding other factors constant. b) (i) 704 . 5 0125 . 0 0 0713 . 0 ) ( 1 1 1 se t (ii) ) ( 1 2 2 se t 0013 . 0 0 0234 . 15 2 01953 . 0 0234 . 15 0013 . 0 2

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c) 1 2 k n SSR 1 2 353 ) 7527 . 0 ( 2 SSR SSR=198.2951 1 ) _ ( n TSS salary l sd 1 353 1823 . 1 TSS TSS=492.0373 TSS SSR R 1 2 0373 . 492 2951 . 198 1 596992 . 0
Question 2 a) Holding other factors constant, if increasing the price of chocolate by 1%, on average the quantity demanded of chocolate will increase by % 1 Holding other factors constant, if increasing the nominal income by 1%, on average the quantity demanded of chocolate will increase by % 3 b) )] ( ), ( [ 3 025 . 0 ), 1 3 30 ( 3 3 025 . 0 ), 1

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## This note was uploaded on 09/06/2010 for the course FBE ECON0701 taught by Professor Paul during the Spring '09 term at HKU.

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2009_sem_1_tutorial_5 - ECON0701 Tutorial 5 Question 1 2009...

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