Hi, I have an econometrics question. I hope it is possible to ask it here. The question goes like this
- A recent study of the dockside (fishermen market level) demand for Connecticut oysters resulted in the following empirical model:
P = 10.0 – 5.0Q + 0.35QW – 0.05QW2 + 1.0M, where:
P = dollars per bushel
Q = 1000 bushels of oysters
W = W weeks ranging from 1 to 52
M = $1000 per capita income
A).Discuss the meaning of the individual estimated coefficients and graphically show the shifts in demand expected over the season (do not draw to scale).
B).What would be the price effect of an incrase of 1,000 bushels supplied during the tenth week of the season?
C). If the average per capita income is $5,000 and the average price per bushel is $10.00, what is the price-income elasticity of demand at the means?