The Following Data Show the Demand for an Airline Ticket

question 88

Multiple Choice

The following data show the demand for an airline ticket dependent on the price of this ticket. For the assumed cubic and log-log regression models, Demand = β₀ + β₁Price + β₂Price² + β₃Price³ + ε and ln(Demand) = β₀ + β₁ln(Price) + ε, the following regression results are available. Using the log-log model, which of the following is the predicted demand when the price is $200?

• A) 10,874.92
• B) 9,201.45
• C) 7,849.25
• D) 12,499.98

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