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Consider a Log-Linear Model where the dependent variable is the quantity of sales as the number of sales in a month. One independent variable is

Consider a Log-Linear Model where the dependent variable is the quantity of sales as the number of sales in a month. One independent variable is price in dollars. The coefficient on price is ?0.038. What do the results of the Log-Linear Model suggest?

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On average, a $1 increase in price results in a 0.038 decrease in the number of sales in a month

On average, a 1% increase in price results in a 0.038% decrease in the number of sales in a month

On average, a 1% increase in price results in a 0.038 decrease in the number of sales in a month

On average, a $1 increase in price results in a 3.8% decrease in the number of sales in a month

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