Question: Refer to the demand for roses function of Exercise 7.16. Confining your considerations to the logarithmic specification, a. What is the estimated own-price elasticity of

Refer to the demand for roses function of Exercise 7.16. Confining your considerations to the logarithmic specification,

a. What is the estimated own-price elasticity of demand (i.e., elasticity with respect to the price of roses)?

b. Is it statistically significant?

c. If so, is it significantly different from unity?

d. A priori, what are the expected signs of X3 (price of carnations) and X4 (income)? Are the empirical results in accord with these expectations?

e. If the coefficients of X3 and X4 are statistically insignificant, what may be the reasons?

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a The ownprice elasticity is 1274 b From the t test we obtain t 12740 0527 24174 The ... View full answer

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