Bmme5103 Jan 2006

INSTRUCTION: Answer whole Questions. QUESTION 1 A typical consumer behaved in the adjacent manner with respect to purchases of look at over the past octonary years: obs 1998 1999 2000 2001 2002 2003 2004 2005 QBUT 150.0000 175.0000 190.0000 170.0000 200.0000 190.0000 180.0000 200.0000 = = = = PBUT 0.990000 0.990000 0.990000 1.150000 1.100000 1.100000 1.100000 0.950000 PMARG 0.650000 0.900000 0.900000 0.900000 0.900000 0.650000 0.650000 0.650000 INC 10500.00 10500.00 11500.00 11500.00 11500.00 11500.00 11000.00 11000.00 where QBUT PBUT PMARG INC per capita consumption of embrace (kg) expense of cover (RM/kg) value of margarine (RM/kg) per capita income (RM) The estimated demand equations for butter in twain analogue and multiplicative (non- unidimensional) functional forms as well as the descriptive statistics atomic fall 18 shown in icon 1. a. measure the estimated demand equations in both functional forms and which ane is bring out to represent the demand for butter. (10 marks) b. From the linear demand function, project the price, income and cross-elasticity coefficients establish on the variable human action values. (6 marks) c. From the non-linear demand function, encipher the price, income and crosselasticity coefficients. (6 marks) d. If the price of butter and margarine bear the same as in 2005, and the income increase by 5.

6% of the 2005 values, (i) fancy the per capita consumption of butter in 2006; and (ii) forecast the 95% trust interval forecast in 2006. (10 marks) [TOTAL: 32 MARKS] 1 QUESTION 2 The exertion function of a merchandise with respect to its labour stimulus is as follows: return 6 16 29 44 55 60 62 62 60 53 Labour 1 2 3 4 5 6 7 8 9 10 Where Q L: L2 LQ LL = = = = = production (tonne) labour (number) full-strength of the number of workers natural pound of end product natural log of the number of workers a. The estimated production functions in divers(a) functional forms are presented in Figure 2. Choose the best estimated equation that represents the...If you trust to position a full essay, pronounce it on our website: Orderessay

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