Suppose the equation of an indifference curve between two goods is X i Y i = β
Question:
XiYi= β1+ β2Xi
How would you estimate the parameters of this model? Apply the preceding model to the data in the following table and comment on your results.
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Write the indifference curve model as Y i 1 1X i 2 u i Now 1 becomes the slope paramete...View the full answer
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