question archive The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:The estimation results are presented below:DEPENDENT VARIABLE:LNQR-SQUAREF-RATIOP-VALUE ON FOBSERVATIONS:640
The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:The estimation results are presented below:DEPENDENT VARIABLE:LNQR-SQUAREF-RATIOP-VALUE ON FOBSERVATIONS:640
Subject:EconomicsPrice: Bought3
The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:The estimation results are presented below:DEPENDENT VARIABLE:LNQR-SQUAREF-RATIOP-VALUE ON FOBSERVATIONS:640.8464110.250.0001VARIABLEPARAMETERESTIMATESTANDARDERRORT-RATIOP-VALUEINTERCEPT5.653.201.770.0825LNP–1.020.59–1.730.0890LNM0.450.222.050.0452LNPR–2.00.75–2.670.0098The estimated demand equation can be expressed in logarithms as lnQ =and in non-linear form as Q =Is good X a normal or inferior good?Are goods X and R complements or substitutes?What is the estimate of income elasticity for this good? If household income increases by 22%, holding all other variables constant, by what percent will the quantity of good X demanded change?
