An econometrician uses a model to estimate demand for wood burning stoves (heaters) in Sweden The following highlights the model (8 marks) Q ws f(P ws , P w ,P eh ,Y) Where Q ws is the quantity demanded of woodstoves, P ws is the price of wood stoves, P w is the price of wood per bundle, P eh is the price of an electric heater and Y is the income of consumers What are the other factors that influence demand that are not used above List at least 2 more factors determinants of demand Consider that the market for wood stoves in Sweden is currently at equilibrium Draw neat diagrams for each case clearly explaining what would happen to the equilibrium price and quantity of woodstoves if P ws falls Y rises P eh falls

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Question: . An econometrician uses a model to estimate demand for wood-burning stoves (heaters) in Sweden. The following highlights the model: (8 marks) Q ws =f(P

. An econometrician uses a model to estimate demand for wood-burning stoves (heaters) in Sweden. The following highlights the model:(8 marks)

Q_ws=f(P_ws, P_w,P_eh,Y)

Where Q_wsis the quantity demanded of woodstoves, P_wsis the price of wood stoves, P_wis the price of wood per bundle, P_ehis the price of an electric heater and Y is the income of consumers.

What are the other factors that influence demand that are not used above? List at least 2 more factors/ determinants of demand.
Consider that the market for wood stoves in Sweden is currently at equilibrium. Draw neat diagrams for each case clearly explaining what would happen to the equilibrium price and quantity of woodstoves if:
P_wsfalls
Y rises
P_ehfalls

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