In the Model Ln(Y_i)= ?₀ + ?₁X_i + U_i, the Elasticity

question 52

Multiple Choice

In the model ln(Y_i) = ?₀ + ?₁X_i + u_i, the elasticity of E(Y|X) with respect to X is

• A)?₁X
• B)?₁
• C) \(\frac { \beta _ { 1 } X } { \beta _ { 0 } + \beta _ { 1 } X }\)
• D)Cannot be calculated because the function is non-linear

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