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An estimate of the demand function for household furniture produced the following results F0.0036 Y0.96R016P 0.4 F00036 Y096R016P048 where FF furniture expenditures per

An estimate of the demand function for household furniture produced the following results: F=0.0036 Y0.96R0.16P(-0.48)F=0.0036 Y0.96R0.16P-0.48 r2=0.996r2=0.996 where FF = furniture expenditures per household YY = disposable personal income per household RR = value of private residential construction per household PP = ratio of the furniture price index to the consumer price index The point price elasticity for household furniture is , and the income elasticity is . According to the estimated model, a 10 percent increase in the value of private residential construction per household the quantity demanded by percent.

May 05 2020 View more View Less

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