8. City government has collected the following data on annual sales tax collecti
ID: 1092635 • Letter: 8
Question
8.
City government has collected the following data on annual sales tax collections and new car registrations:
Y: Annual Sales Tax Collections ($ millions)
X: New Car Registrations
(thousands)
1.0
10
1.4
12
1.9
15
2.0
16
2.1
17
2.3
20
(a) Determine the least squares regression equation.
(b) Using the results of part (a), find the estimated sales tax collections if new car registrations total 22.
9.
Annual demand and supply for the Entronics company is given by:
QD = 5,000 + 0.5 I + 0.2 A - 100P, and QS = -5000 + 100P
Where Q is the quantity per year, P is price, I is income per household, and A is advertising expenditure.
(A). If A = $10,000 and I = $25,000, what is the demand curve?
(B). Given the demand curve in part (A), what is equilibrium price and quantity?
(C). If consumer incomes increase to $30,000, what will be the new equilibrium price and quantity?
10.
A firm has two plants, one in the United States and one in Mexico, and it cannot change the size of the plants or the amount of capital equipment. The wage in Mexico is $5. The wage in the U.S. is $20. Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
(A). Is the firm maximizing output relative to its labor cost? Show how you know.
(B). If it is not, what should the firm do?
Y: Annual Sales Tax Collections ($ millions)
X: New Car Registrations
(thousands)
1.0
10
1.4
12
1.9
15
2.0
16
2.1
17
2.3
20
Explanation / Answer
hi nswer will be 214440
the a
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