Homework (Ch 04) Attempts Keep the Highest 1 2 7. Exercise 4.7 An estimate of the demand function for household furniture produced the following results: F = 0.0036 Y1'35R0-15PF0-55) r2 = 0.996 where F = furniture expenditures per household Y : disposable personal income per household R = value of private residential construction per household P = ratio of the furniture price index to the consumer price index The point price elasticity for household furniture is V , and the income elasticity is 1' According to the estimated model, a 10 percent increase in the value of private residential construction per household demanded by v percent. 7 the quantity X