Chapter Outline

Headline: Winners of Wireless Auction to Pay $7 Billion

1. Introduction
2. The Elasticity Concept
3. Own-Price Elasticity of Demand
   1. Elasticity and Total Revenue
   2. Factors Affecting the Own-Price Elasticity
      1. Available Substitutes
      2. Time
      3. Expenditure Share
   3. Marginal Revenue and the Own Price Elasticity of Demand
4. Cross-Price Elasticity
5. Income Elasticity
6. Other Elasticities
7. Obtaining Elasticities from Demand Functions
   1. Elasticities for Linear Demand Functions
   2. Elasticities for Nonlinear Demand Functions
8. Regression Analysis
   1. Evaluating the Statistical Significance of Estimated Coefficients
      1. Confidence Intervals
      2. The t-Statistic
   2. Evaluating the Overall Fit of the Regression Line
      1. The R-Square
      2. The F-Statistic
   3. Nonlinear and Multiple Regressions
      1. Nonlinear Regressions
      2. Multiple Regression
9. Answering the Headline
10. Summary
11. Key Terms and Concepts
12. Conceptual and Computational Questions
13. Problems and Applications
14. Selected Readings