The Demand for Hamburgers Is Estimated from This Theoretical Model

question 147

Essay

The demand for hamburgers is estimated from this theoretical model:
Q = kP^aI^bA^ce,
where Q = units per day, P = price per unit, A = advertising budget per month by sellers, I = per capita income of consumers, and e = a random error. In a recent study, one researcher estimated the log-linear form of this equation with regression analysis as:
log Q = 2.5 - 0.33 log P + 0.15 log I + 0.2 log A.
Explain what the coefficients of log P, log I, and log A reveal about this product.

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