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How is elasticity related to logarithms

04/10/2021 Client: muhammad11 Deadline: 2 Day

Score: 0 of 1 pt 8 of 11 (7 complete) HW Score: 54.55%, 6. Text Question 4.2 EQuestion Help Suppose that you believe that the demand curve is a constant elasticity demand curve: Q Ap where A is a positive constant and e is the constant elasticity of demand. You have some data and want to estimate a constant elasticity demand curve: where A is a positive constant, e is the constant elasticity of demand, and u is an error term. Take logarithms of both sides of this equation, and show that you get an equation that is linear in logarithmic terms (called a log-linear equation). Explain how you can estimate
Text Question 4.2 Question Help * where A is a positive constant, e is the constant elasticity of demand, and u is an error term Take logarithms of both sides of this equation, and show that you get an equation that is linear in logarithmic terms (called a log-linear equation). Explain how you can estimate this equation in Excel or other programs using the OLS techniques that we have discussed First the log-linear demand equation given by OA. Q=ln(A) + eln(p)+In(u). B. In(Q)=ln(A) + eln(p) + u.
Text Question 4.2 Question Help You can estimate this equation in Excel using an OLS regression of the form by 0 A. using the actual values of your quantity and price data, where α is an estimate of In(A) and β is an estimate of e. O B. by converting your quantity and price data to logs, where a is an estimate of In(A) and p is an estimate of eln(p). O C. by converting your quantity and price data to logs, where a is an estimate of A and ßis an estimate of u. D. ○ E. using the actual values of your quantity and price data, where α is an estimate of A and β is an estimate of e. by converting your quantity and price data to logs, where α is an estimate of In(A) and ßis an estimate of e. Click to select your answer and then click Check Answer.

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