MEANING OF COEFFICIENTBO
4. Meaning of coefficient
Bo: If all these other factors equal to zero, quantity of new cars sold quarterly equals
to 25531.7x10
3
units . But this situation can not occur due to the theory because the
quantity of good sold in the market always depends on other factors that affect to
demand and supply.
B
1
: If the real price index of a new car increases 1$ , the quantity of new cars sold
quarterly will increase 50.1164x10
3
units.
⇒ It follows the law of macroeconomics mentioned in theory background above.
B
2
: If the capita disposable personal income increase 1$, the quantity of new cars
sold quarterly will increase 630.491 units.
⇒ It follows the law of microeconomics mentioned in theory background above .
B
3
: If the prime rate increases 1%, the quantity of new cars sold quarterly will
decrease 44.3828x10
3
units.
⇒ It follows the law of macroeconomics mentioned in theory background above .
B
4
: If the unemployment rate increases 1%, the quantity of new cars sold quarterly
will decrease 41.8123x10
3
units.
B
5
: If the number of cars on road increases 1 units, the quantity of new cars sold
quarterly will increase 14.0646 units.
⇒ It doesn’t follow the law of economics. But, in the fact that, it is easy to
understandable and which is explained in the theory background above.
B
6
: If the population increase 1 people, the quantity of new cars sold quarterly will
decrease 150.679 units.
⇒ It doesn`t follow the law of economics. But, now, there is no theory to explain
about that.