Question
In: Economics
House prices in Southern California reached a record median price of $505,000 in 2007 (nominal dollars)....
- House prices in Southern California reached a record median price of $505,000 in 2007 (nominal dollars). In 2018 the median price was $507,500 (again nominal dollars), surpassing the previous record. Suppose the CPI in 2007 was 217.39 and 256.21 in 2018. Which year had the higher real price in 2018 dollars and by how much?
2. Let the market demand for a product be described by P = 40 - 0.02*Q. The market supply curve is P = 20 + 0.03*Q.
(a) Calculate the market equilibrium price and output under perfect competition.
(b) Determine consumer’s surplus at the market equilibrium.
(c) Determine producer’s surplus at the market equilibrium.
(d) Determine the arc elasticity of demand for a four dollar ($4.00) increase in the market equilibrium price (i.e., the price increases four dollars from the price you determined in part a).
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
House Prices: Notes on variables: Price: In thousands of dollars Ac: air conditioner (1 if yes,...
House Prices:
Notes on variables:
Price: In thousands of dollars
Ac: air conditioner (1 if yes, 0 if no)
Size: In square feet
Age: In years
Pool: (1 if yes, 0 if no)
Bedrms: Number of Bedrooms
Baths: Number of Bathrooms
4) a. Make a Scatter plot where x=size and
y=price
b. Calculate the Least
Squares Regression (LSR) equation:
c. Does the intercept
make sense? Why or why not?
c. Find and
interpret the R2
d. Predict the average price...
House prices: The following table presents prices, in thousands of dollars, of single-family homes for 20...
House prices: The following table presents
prices, in thousands of dollars, of single-family homes for 20 of
the 25 largest metropolitan areas in the United States for the
third quarter of 2012 and the third quarter of 2013.
Metro Area
2012
2013
Metro Area
2012
2013
Atlanta, GA
87.8
115.1
Philadelphia, PA
193.5
197.7
Baltimore, MD
218.1
226.5
Phoenix, AZ
129.9
169.0
Boston, MA
311.5
332.2
Portland, OR
208.6
246.5
Chicago, IL
157.2
159.4
Riverside, CA
174.3
216.7
Cincinnati, OH...
Q4. The following information consists of prices (in dollars) for one sample of California cabernet sauvignon...
Q4. The following information consists of prices (in dollars)
for one sample of California cabernet sauvignon
wines that received ratings of 93 or higher in an issue of Wine
Spectator and another sample of California
cabernets that received ratings of 89 or lower in the same issue.
De ne population 1 as wines that received
ratings of at least 93. A sample of size n1 = 12; x1 = 110:75 and
s1 = 48:744 was obtained. De ne population
2...
Q4. The following information consists of prices (in dollars) for one sample of California cabernet sauvignon...
Q4. The following information consists of prices (in dollars)
for one sample of California cabernet sauvignon wines that received
ratings of 93 or higher in an issue of Wine Spectator and another
sample of California cabernets that received ratings of 89 or lower
in the same issue. Define population 1 as wines that received
ratings of at least 93. A sample of size n1 = 12, x¯1 = 110.75 and
s1 = 48.744 was obtained. Define population 2 as wines...
In September 2012, the share price of Apple Inc. reached the record high of USD705. However,...
In September 2012, the share price of Apple Inc. reached the
record high of USD705. However, the price declined by 40% since
then and was around 420 in March 2013. Financial analysts raised a
few concerns about Apple’s prospects, including increased
competition in the industry, uncertainty after the passing away of
Steve Jobs, and controversy of its tax practice. Required:
b. In March 2013, a financial analyst recommended investors to
buy Apple’s shares because “the forward P/E ratio for Apple...
A realtor in Oregon found that the selling price (in thousand dollars) of the house and...
A realtor in Oregon found that the selling price (in thousand
dollars) of the house and the age of the house (how long since it
was built) was highly correlated (r=–0.6). She collected some data
and derived the following regression model.
Y = 260 – 2.5X
(1) Given above information, what would be the expected selling
price for a house that was build 20 years ago?
(2) If another house is 8 years newer than the one mentioned in
(1),...
1). During January of 2007, the average price of regular unleaded gasoline in Oakland, California increased...
1). During January of 2007, the average price of regular
unleaded gasoline in Oakland, California increased 11.0 percent. If
the price elasticity of demand for gasoline was 0.13, the price
hike means that the quantity demanded decreased by.
6.46 percent
8.46 percent
1.43 percent
4.31 percent
0.16 percent
2). If a 4 percent change in the price of a good leads to a 3
percent change in quantity demanded, the price elasticity of demand
equals
1.33.
4.00.
0.75.
3.44.
None...
The U.S. Census Bureau announced that the median sales price of new house sold in December...
The U.S. Census Bureau announced that the median sales
price of new house sold in December of 2018 $322,800, and the mean
sales price was $376,000
(https://www.census.gov/construction
/nrs/pdf/uspricemon.pdf). Assume that the standard
deviation of the prices is $90,000.
a. If you select a random sample of n = 100, what is the
probability that the sample mean will be less than
$300,000?
b. If you select a random sample of n = 100, what is the
probability that the sample...
Number 3 (10 pts) You collect data on house sale prices (in thousands of dollars), along...
Number 3 (10 pts) You collect data on house sale prices (in
thousands of dollars), along with the number of bedrooms of the
house, and the size of the house measured in square feet. Running a
regression in Excel with the sale price as the response variable
gives the following output:
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.724573411
R Square 0.525006628
Adjusted R Square 0.419452545
Standard Error 193.4364724
Observations 12
ANOVA
df SS MS F Significance F
Regression=Model 2 372217.2302...
House prices: Data from the National Association of Realtors indicate that the mean price of a...
House prices: Data from the National Association of Realtors
indicate that the mean price of a home in Denver, Colorado, in
December 2016 was 366.5 thousand dollars. A random sample of 50
homes sold in 2017 had a mean price of 396.3 thousand dollars. a.
Assume the population standard deviation is σ = 150. Can you
conclude that the mean price in 2017 differs from the mean price in
December 2016? Use the α = 0.05 level of significance. b....
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