A study of expenditures on drink in cities resulting in the following equation:

Ln E=0.673 Ln Y + 0.158 log N

Where E is drink expenditures; Y is total expenditures on goods and services, and N is the size of the family. Using your own words, what does this equation imply?

Answer rating: 100% (QA)

Firstly an econometric model where both variables contain logarithms is called a log log model Log m... View the full answer