The relationship between food expenditure of 25 households (y) and their total expenditures (x) is estimated as follows, In Y = 2.24 + 0.364 In X ' = 0.886 a) Interpret the slope coefficient of the model. b) What is the elasticity of food expenditure with respect to total expenditure?

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The relationship between food expenditure of 25 households (y) and their total expenditures (x)
is estimated as follows,
In Ý = 2.24 +0.364 In X
,' = 0.886
a) Interpret the slope coefficient of the model.
b) What is the elasticity of food expenditure with respect to total expenditure?
Transcribed Image Text:The relationship between food expenditure of 25 households (y) and their total expenditures (x) is estimated as follows, In Ý = 2.24 +0.364 In X ,' = 0.886 a) Interpret the slope coefficient of the model. b) What is the elasticity of food expenditure with respect to total expenditure?
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