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JulijaS [17]
2 years ago
6

(a) suppose that a homeowner converts part of an existing family room in her house into a new bathroom. what is the expected inc

rease in the value of the house?
Business
1 answer:
bearhunter [10]2 years ago
4 0

Answer: The increase value of the house in thousands dollars will be $23400

Explanation:

In this scenario, Things to be note are:

(1) only the bathroom number has an increase of 1.

(2) the remaining regressors are the same.

(3) Initial price and the current price only differ in BATH

Therefore,

23.4(BATH+1) - 23.4BATH = 23.4

Hence, the increase value of the house in thousands dollars is $23400

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As a result, production possibility curve model is two different commodities such as sugar and coffee.

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