On an excel sheet answer the following questions:
Q=Quantity (in 100s) of aspirin purchased in a year
P= Average price of aspirin in that year
Y=Annual income
A=Age of buyer
Q1. If we divide the population into two groups, up to age 35 and over age 35, which group purchases more aspirin?
Q2. Divide the population into three groups- up to age 30, over 30 and up to 45, and over 45. Do the purchases vary by age?
Q3. What is the relationship in a regression analysis between Q and P? Between Q and Y? Between Q and A?
Observation
Q
P
Y
A
1
1
1.5
20
25
2
2
1.5
40
20
3
4
1
12
25
4
2
1
10
30
5
2
1
8
30
6
3
2
30
35
7
3.5
1.5
30
40
8
4
2
20
40
9
7
1
20
45
10
1
3
15
40
11
2
2
18
30
12
3
2
20
32
13
3.5
2
15
36
14
4
2
10
30
15
2
3
25
20
On an excel sheet answer the following questions:
Q=Quantity (in 100s) of aspirin purchased in a year
P= Average price of aspirin in that year
Y=Annual income
A=Age of buyer
Q1. If we divide the population into two groups, up to age 35 and over age 35, which group purchases more aspirin?
Q2. Divide the population into three groups- up to age 30, over 30 and up to 45, and over 45. Do the purchases vary by age?
Q3. What is the relationship in a regression analysis between Q and P? Between Q and Y? Between Q and A?
| Observation | Q | P | Y | A |
| 1 | 1 | 1.5 | 20 | 25 |
| 2 | 2 | 1.5 | 40 | 20 |
| 3 | 4 | 1 | 12 | 25 |
| 4 | 2 | 1 | 10 | 30 |
| 5 | 2 | 1 | 8 | 30 |
| 6 | 3 | 2 | 30 | 35 |
| 7 | 3.5 | 1.5 | 30 | 40 |
| 8 | 4 | 2 | 20 | 40 |
| 9 | 7 | 1 | 20 | 45 |
| 10 | 1 | 3 | 15 | 40 |
| 11 | 2 | 2 | 18 | 30 |
| 12 | 3 | 2 | 20 | 32 |
| 13 | 3.5 | 2 | 15 | 36 |
| 14 | 4 | 2 | 10 | 30 |
| 15 | 2 | 3 | 25 | 20 |
Related textbook solutions
Related questions
Consider the following market demand schedule and total costs for a monopoly.
| Q | P | TR | TC | MR | MC | Profit | ||||||||||||||||||||
| 0 | 45 | 4 | ||||||||||||||||||||||||
| 1 | 40 | 9 | ||||||||||||||||||||||||
| 2 | 35 | 19 | ||||||||||||||||||||||||
| 3 | 30 | 39 | ||||||||||||||||||||||||
| 4 | 25 | 61 | ||||||||||||||||||||||||
| 5 | 20 | 91 | ||||||||||||||||||||||||
| 6 | 15 | 130 | ||||||||||||||||||||||||
| 7 | 10 | 172 |
a) Fill in the blanks.
b) How is the relationship between price and MR different between monopolistic and perfectly competitive markets?
c) Would the demand curve facing a monopolistic competitive market be more or less elastic than the demand curve facing a monopolist, why? Do firms in a monopolistically competitive market make long-run economic profits, why or why not?
