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LSUS MBA701 EXAM 2 QUESTIONS AND ANSWERS 2024
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LSUS MBA701 EXAM 2 QUESTIONS AND ANSWERS 2024
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LSUS MBA701 EXAM 2Demand equations derived from actual market data are
a. empirical demand functions.
b. never estimated using consumer interviews.
c. generally estimated using regression analysis.
d. both a and c
e. all of the above - ANSWERS-e. all of the above
A representative sample
a. eliminates the problem of response bias.
b. reflects the characteristics of the population.
c. is frequently a random sample.
d. both b and c
e. all of the above - ANSWERS-d. both b and c
The estimated demand for a good is
where Q is the quantity demanded of the good, P is the price of the good, M is
income, and is the price of related good R. The coefficient on P
a. does not have the expected sign.
,b. is negative as expected.
c. should have the same sign as the coefficient on .
d. should not be greater than one (in absolute value).
e. both b and d
Answer: b - ANSWERS-b. is negative as expected.
The estimated demand for a good is
where Q is the quantity demanded of the good, P is the price of the good, M is
income, and is the price of related good R. The good is
a. an inferior good since the coefficient on is positive.
b. a normal good since the coefficient on is positive.
c. an inferior good since the coefficient on M is greater than one.
d. a normal good since the coefficient on M is positive.
e. none of the above
Answer: d - ANSWERS-a normal good since the coefficient on M is positive.
.
The estimated demand for a good is
where Q is the quantity demanded of the good, P is the price of the good, M is
income, and is the price of related good R. This good and the related good R are
,a. complements since the coefficient on M is positive.
b. substitutes since the coefficient on M is positive.
c. complements since the coefficient on is positive.
d. substitutes since the coefficient on is positive. - ANSWERS-d. substitutes since
the coefficient on is positive.
The estimated demand for a good is
where Q is the quantity demanded of the good, P is the price of the good, M is
income, and is the price of related good R. If income decreases by $1,000, all else
constant, quantity demanded will ________ by _________ units.
a. decrease; 320 units
b. increase; 3.2 units
c. decrease; 1200 units
d. increase; 500 units
e. decrease; 500 units - ANSWERS-a. decrease; 320 units
The estimated demand for a good is
where Q is the quantity demanded of the good, P is the price of the good, M is
income, and is the price of related good R. If the price of the good falls by $4, the
quantity demanded will ________ by ________ units.
a. increase; 5 units
, b. increase; 20 units
c. increase; 50 units
d. increase; 48 units
e. decrease; 12 units - ANSWERS-b. increase; 20 units
The estimated demand for a good is
where Q is the quantity demanded of the good, P is the price of the good, M is
income, and is the price of related good R. The coefficient on P
a. violates the law of demand.
b. is negative as dictated by the law of demand.
c. should not be greater than one (in absolute value).
d. should have the same sign as the coefficient on .
e. both c and d - ANSWERS-is negative as dictated by the law of demand.
The estimated demand for a good is
where Q is the quantity demanded of the good, P is the price of the good, M is
income, and is the price of related good R. The good is
a. an inferior good since the coefficient on is negative.
b. a normal good since the coefficient on is negative.
c. a normal good since the coefficient on M is greater than one (in absolute
value).
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