Suppose You Wish to Estimate the Elasticity Between Solar Power

question 23

Multiple Choice

Suppose you wish to estimate the elasticity between solar power systems sales and the tax on solar power systems using state-level data on solar system sales and solar system taxes.You could estimate this effect by regressing the

• A)total number of solar systems sold on solar system tax rates.
• B)total number of solar systems sold on the log of solar system tax rates.
• C)log of the total number of solar systems sold on the log of solar system tax rates.
• D)log of the total number of solar systems sold on the solar system tax rate.