Question 14 (1 point)

If the demand function is Y = a + bX + e, then

Question 14 options:

	b is the slope
	a is the slope
	a is the error term
	a is meaningless

Question 15 (1 point)

If the value of b in the equation in question 14 is 0.75 and the standard error is 0.15, the t-stat is

Question 15 options:

	0.2
	5
	3
	Any of the above

Question 16 (1 point)

The demand for Toyota Camry is lnQ = a - 0.18 lnP_Q + 0.03 lnAdv + 1.25 lnM; where Q = quantity demanded, P_Q is the price, Adv is the amount spent on advertisement, and M is the household income. What is the income elasticity?

Question 16 options:

	1.25
	1.42
	1.25
	None of the above

If the standard error of price (P_Q) is 0.06, is price a significant variable?

Question 17 options:

	Yes
	No
	Price is not in the model
	None of the above

Question 18 (1 point)

What will happen to the quantity demanded when income increases by 10%?

Question 18 options:

	Decreases by 12.5%
	No effect
	Increases by 14.2%
	Increases by 12.5%

Question 19 (1 point)

Saved

Which of the following elasticities measure a movement along a curve rather than a shift in the curve?

Question 19 options:

	The price elasticity of demand
	The price elasticity of supply
	The income elasticity of demand
	(a) and (b)

Question 20 (1 point)

The demand for rice is Q_D = 88 - 2P and the supply is Q_S = 20P, what is the equilibrium price and quantity?

Question 20 options:

	P = 4, Q = 80
	P = 2, Q = 40
	P = 40, Q = 2
	P = 44, Q = 22