Consider the following model Y=B1 + B2 In X₂ + B3 In X3 + u where Y- per capita consumption of tea, X₂ price of coffee (measured in dollars per pound), = X3 = price of sugar (measured in dollars per pound). Suppose coffee and tea are substitutes. What would be the sign of the coefficient B₂? OB2> 0 32 0 O B2=0 This cannot be determined with the amount of information given 4

Consider the following model Y=B1 + B2 In X₂ + B3 In X3 + u where Y- per capita consumption of tea, X₂ price of coffee (measured in dollars per pound), = X3 = price of sugar (measured in dollars per pound). Suppose coffee and tea are substitutes. What would be the sign of the coefficient B₂? OB2> 0 32 0 O B2=0 This cannot be determined with the amount of information given 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use matrices to solve the following pairs of simultaneous equations: 3x + 4y = -1 and 5x - y = 6
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