(8) Based on the log-linear regression results, would you expect a change in income to affect the demand for gasoline much (make a specific numerical reference)? Explain and support your answer. (Hint: Consider the sign, size and statistical significance of the estimated coefficient on In (M).) (2 points)

(8) Based on the log-linear regression results, would you expect a change in income to affect the demand for gasoline much (make a specific numerical reference)? Explain and support your answer. (Hint: Consider the sign, size and statistical significance of the estimated coefficient on In (M).) (2 points)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 1.2CE: Interpret the coefficients and calculate the price elasticity of soft drink demand.

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