From the data of 46 states in the United States for 1992, we obtained the following results:

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From the data of 46 states in the United States for 1992, we obtained the following results: (08)

ln C= 4.30 – 1.34 ln P + 0.17 ln Y

Se=(0.91) (0.32) (0.20) R2= 0.27

Where C= Cigarette consumption packs per year

P=Real price per pack

Y=Real disposable income per capita

a)What is the elasticity of demand for cigarettes with respect to price? Is it statically significant?

b)What is the elasticity of demand for cigarettes with respect to income? Is it statically significant? If not, what might be the reason?

Related Book For answer-question

Introductory Statistics

ISBN: 978-0321989178

10th edition

Authors: Neil A. Weiss

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Posted Date: Jul 21, 2020 02:55 AM

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From the data of 46 states in the United States for 1992, we obtained the following results:

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Introductory Statistics

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