Which of the Following Regressions Would Yield a Coefficient Estimate

question 28

Multiple Choice

Which of the following regressions would yield a coefficient estimate that would be directly interpreted as the price elasticity of demand?

• A) Quantity_i = α₀ + α₁log(Price_i)
• B) log(Quantity_i) = α₀ + α₁log(Price_i)
• C) Quantity_i = α₀ + α₁Price_i
• D) Quantity_i = α₀ - α₁log(Price_i)

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Definitions:

Intrinsic Motives

Internal drives for behavior that come from personal satisfaction or the joy of doing a task, rather than external rewards.

Drive Level

The intensity of an urge or motivation that propels an individual towards a certain behavior to satisfy a need or achieve a goal.

Arousal

Refers to the physiological and psychological state of being awoken or alert, typically involving the activation of certain brain pathways and bodily responses.

Optimal Level

Refers to the most favorable point, degree, or amount of something for a particular purpose or outcome.