Problem 2 (8 points): You are doing a regression analysis on stock data, which consists of a companies' stocks measured at 20 quarterly intervals over the last five years. Each observation consists of the stock price and the dividends paid per share during that month. a (2 points). You want to know if the stock price grows faster when firms pay higher dividend rates. Write down a model that allows you to estimate the effect of increasing the dividend rate on the growth rate of the stock price. Note that a dividend rate is the percentage of earnings paid as dividends to stockholders, and is generally chosen by firms, while the total amount of dividends paid generally increases over time as firms grow.

answer; erp systems;

answerdemographic;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.

paying attention to the details