Question: Your marketing research department estimates that the?log-linear demand function for your product?is: (see attached) Your marketing research department estimates that the log-linear demand function for

Your marketing research department estimates that the?log-linear demand function for your product?is: (see attached)

Your marketing research department estimates that the log-linear demand function for your product is: In Q = 8.2 - 1.6 In P. The standard error of the coefficient for In P is 0.3, and the 95 percent confidence interval runs from - 2.2 to - 1.0. At a price of $50, the predicted price elasticity of demand is equal to

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=+ a. What is the per-worker production function?

=+ 3. Consider an economy described by the production function: Y = F(K, L) = K0.3L0.7.

=+ b. What happens subsequently to output per worker in the postwar economy? Is the growth rate of output per worker after the war smaller or greater than it was before the war?