Exhibit 16

question 29

Multiple Choice

Exhibit 16.5.The following data shows 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: Refer to Exhibit 16.5.What is the price elasticity of the demand found by the log-log model?

• A)26.3660
• B)-3.2577
• C)0.9852
• D)0.2071

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Definitions:

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Folic Acid

A water-soluble B-vitamin (B9) important for cell growth and metabolism, often taken before and during pregnancy to prevent birth defects.

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