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    Elasticity Case and Questions: National consumption of chicken

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    There are 3 attached files.

    One is the case with actual deliverables highlighted in yellow. One is the spreadsheet with necessary data. The last is a document with examples of how the tables are to be done. The numbers on the table example sheet are not right, they are just there to show how the outcome should look.

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    https://brainmass.com/statistics/regression-analysis/elasticity-case-questions-national-consumption-chicken-307972

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    Please see the attached files.

    The calculations are provided in the excel file.

    Question I
    Table 1
    Regression Results

    Variable Model 1 Model 2 Model 3 Model 4
    Intercept 39.1373*
    (18.8988) 39.0350*
    (18.9692) 39.4976*
    (18.0723) 39.7745*
    (19.0077)
    Price of Chicken -0.1770*
    (3.9920) -0.1223
    (1.9412) -0.1347
    (2.0367) -0.1556*
    (3.3572)
    Per Capita Disposable Income 0.0022*
    (20.4011) 0.0023*
    (18.6920) 0.0023*
    (18.2546) 0.0023*
    (19.0954)
    Retail Price of Pork -0.0287
    (1.2153) -0.0197
    (0.7229)
    Retail Price of Beef -0.0059
    (0.6757)
    Combined price of substitutes -0.0161
    (1.3934)
    F Statistic 1798.9830*
    1217.1448*
    897.4686*
    1234.1878*

    R2 0.9909
    0.9913
    0.9914
    0.9914

    Adjusted R2 0.9904
    0.9905
    0.9903
    0.9906

    Note1: Numbers in parentheses below the parameter estimates are absolute values of t-ratios.
    Note 2: * Denotes significant at 1% level

    Regression Models

    Model 1:
    Model 2:
    Model 3:
    Model 4:

    Where Per Capita consumption of chicken (lbs)
    = Real retail price of chicken per lb (cents)
    = Real disposable income per capita ($)
    = Real retail price of pork per lb (cents)
    = Real retail price of beef per lb (cents)
    = Real retail price of chicken substitutes per lb (cents)
    Question II
    Elasticity Calculation

    The elasticity of demand are calculated by using the following formula
    1. Own Price Elasticity
    Where = Regression coefficient corresponding to price
    = Mean Price of chicken
    = Quantity estimated by using the regression equation corresponding to the average price
    2. Income Elasticity
    Where = Regression coefficient corresponding to income
    = Mean per capita disposable income
    = Quantity estimated by using the regression equation corresponding to
    3. Cross - Price Elasticity with Pork
    Where = Regression coefficient corresponding to price of pork
    = Mean Price of pork
    = Quantity estimated by using the regression equation corresponding to

    4. Cross - Price Elasticity with Beef
    Where = Regression coefficient corresponding to price of beef
    = Mean Price of beef
    = Quantity estimated by ...

    Solution Summary

    National consumption of chickens are examined.

    $2.19

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