Using a Sample of 100 Consumers,a Double-Log Regression Model Was

question 13

Multiple Choice

Using a sample of 100 consumers,a double-log regression model was used to estimate demand for gasoline.Standard errors of the coefficients appear in the parentheses below the coefficients.
$\operatorname { Ln } \mathrm { Q } = 2.45 - 0.67 \operatorname { Ln } \mathrm { P } + .45 \operatorname { Ln } \mathrm { Y } - .34 \operatorname { Ln } \mathrm { P } _ { \text {cars } }$
$\begin{array} { l l l }( .20 ) & ( .10 ) & ( .25 ) \end{array}$

• A) Gasoline is inelastic.
• B) Gasoline is a normal good.
• C) Cars and gasoline appear to be mild complements.
• D) The coefficient on the price of cars (P_cars)is insignificant.
• E) All of the coefficients are insignificant.

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Definitions:

Leukotrienes

Leukotrienes are lipid molecules that play a pivotal role in the inflammatory response and allergic reactions within the body.

Prostaglandins

A group of physiologically active lipid compounds that have diverse hormone-like effects in animals.

Heparin

An anticoagulant medication or naturally occurring substance that prevents the formation of blood clots.

SRS-A

A group of chemical mediators known as slow-reacting substances of anaphylaxis, involved in allergic reactions.