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The Following Data Show the Demand for an Airline Ticket

question 66

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The following data show the demand for an airline ticket dependent on the price of this ticket. 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 = β<sub>0</sub> + β<sub>1</sub>Price + β<sub>2</sub>Price<sup>2 </sup>+ β<sub>3</sub>Price<sup>3 </sup>+ ε and ln(Demand) = β<sub>0</sub> + β<sub>1</sub>ln(Price) + ε,the following regression results are available.   Which of the following 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 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. 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 = β<sub>0</sub> + β<sub>1</sub>Price + β<sub>2</sub>Price<sup>2 </sup>+ β<sub>3</sub>Price<sup>3 </sup>+ ε and ln(Demand) = β<sub>0</sub> + β<sub>1</sub>ln(Price) + ε,the following regression results are available.   Which of the following 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 Which of the following is the price elasticity of the demand found by the log-log model?


Definitions:

UAW

United Auto Workers, a labor union representing workers in the United States, Canada, and Puerto Rico, primarily in the automotive industry.

NAACP

The National Association for the Advancement of Colored People, a civil rights organization founded in 1909 to fight prejudice, lynching, and Jim Crow segregation, and to work for the betterment of people of color.

Henry Ford

An American industrialist and founder of the Ford Motor Company, known for revolutionizing the automobile industry with assembly line production.

UNESCO

The United Nations Educational, Scientific and Cultural Organization, a specialized agency aimed at promoting world peace and security through international cooperation in education, the arts, sciences, and culture.

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