What is the income elasticity of demand? 0.567 0.332 -1.957 1.706 What is the cross price elasticity of demand? 3.009 1.706 0.567 -1.957 According to the estimated model, the demand for haddock is? inelastic/elastic with respect to price.
What is the income elasticity of demand? 0.567 0.332 -1.957 1.706 What is the cross price elasticity of demand? 3.009 1.706 0.567 -1.957 According to the estimated model, the demand for haddock is? inelastic/elastic with respect to price.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The demand for haddock has been estimated as:
log(Q)=a+b log(P)+c log(I)+d log(Pm)logQ=a+b logP+c logI+d logPm
where
QQ = quantity of haddock sold in New England
PP = price per pound of haddock
II = a measure of personal income in the New England region
PmPm = an index of the price of meat
Suppose b=−1.957b=−1.957, c=0.567c=0.567, and d=1.706d=1.706.
What is the price elasticity of demand ?
1.706
-3.451
-1.957
0.567
What is the income elasticity of demand?
0.567
0.332
-1.957
1.706
What is the cross price elasticity of demand?
3.009
1.706
0.567
-1.957
According to the estimated model, the demand for haddock is? inelastic/elastic with respect to price.
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