Economics Assignment with Multiple Regression Model and Free Trade Analysis
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Added on  2023/06/08
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This economics assignment covers multiple regression model and free trade analysis. It includes regression statistics, impact of tariff on energy bars, and benefits of free trade.
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Running head: ECONOMICS ASSIGNMENT Economics Assignment Name of the student Name of the University Author note
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1ECONOMICS ASSIGNMENT Table of Contents PROBLEM A.............................................................................................................................2 ANSWER 1............................................................................................................................2 PROBLEM B.............................................................................................................................3 Answer1.................................................................................................................................3 ANSWER 2............................................................................................................................3 PROBLEM C.............................................................................................................................4 ANSWER1.............................................................................................................................4 REFERENCE LIST...................................................................................................................5
2ECONOMICS ASSIGNMENT PROBLEM A ANSWER 1 SUMMARY OUTPUT Regression Statistics Multiple R 0.95593 3 R Square 0.91380 7 Adjusted R Square 0.89859 7 Standard Error 7.81913 5 Observatio ns21 ANOVA dfSSMSF Significa nce F Regression3 11019. 21 3673.0 7 60.077 492.95E-09 Residual17 1039.3 61 61.138 88 Total20 12058. 57 Coefficie nts Stand ard Errort Stat P- value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept - 12.1602 11.307 61 - 1.0754 0.2972 22-36.0172 11.696 75 - 36.017 2 11.696 75 Average income per person 0.00483 8 0.0018 15 2.6652 07 0.0163 16 0.00100 8 0.0086 68 0.0010 08 0.0086 68 Tariff rate on imports of energy bars - 6.45698 1.0416 15-6.199 9.71E- 06-8.65459 - 4.2593 6 - 8.6545 9 - 4.2593 6 Number of stores where energy bars are offered 4.07244 4 1.8978 01 2.1458 75 0.0466 14 0.06843 4 8.0764 54 0.0684 34 8.0764 54
3ECONOMICS ASSIGNMENT By conducting the multiple regression model it can be said that demand of energy bars will increase when the average income per person increases (Beckman, 2015). Demand will also increase when the number of stores offering energy bars will increase. However, tariff has a negative coefficient on the energy bars which suggests increase in tariff will decrease the demand for bars. PROBLEM B Answer1 Based on the results of multiple regression, the Trade minister is to be informed that when the rate of tariff on imported energy bars will increase the demand for the bars will decrease as the coefficient of tariff is negative. ANSWER 2
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4ECONOMICS ASSIGNMENT Figure1: Impact of tariff on energy bars The tariff will have negative impact on the energy. The price increases from P to P+T when tariff is imposed which results decrease in demand for imported bars(Snape, 2018).. The demand of energy bars which is imported will decreases from D1 to D2. PROBLEM C ANSWER1 The above results of the regression shows that tariff has a negative impact on the demand of energy bars. When free trade takes place, both the countries will benefit from it as they will get the energy bars at the same price (Beckman, 2015). Free trade will also increase healthycompetitionwhichresultsinincreaseinbetterqualityproducts.Whenthe international trade takes place without trade barriers or restrictions, it is termed as free trade. In case of free trade price would have not gone up to P+T and the consumers would have enjoyed the imported energy bars at the same price.
5ECONOMICS ASSIGNMENT REFERENCE LIST Beckman, J., Arita, S., Mitchell, L., & Burfisher, M. (2015). Agriculture in the Transatlantic Trade and Investment Partnership: Tariffs, Tariff-Rate Quotas, and Non-Tariff Measures.Economic Research Report, (198). Snape,R.H.(2018).9THEIMPACTONEXPORTERSOFIMPORT RESTRICTIONS.Firms and Markets: Essays in Honour of Basil Yamey,8, 201.