The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:
The estimation results are presented below:
‪
-An 8 percent decrease in the price of R, holding all other variables constant, causes quantity demanded to _____________ (increase, decrease) by _____ percent.

Question

The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:
  The estimation results are presented below:
‪ 
-An 8 percent decrease in the price of R, holding all other variables constant, causes quantity demanded to _____________ (increase, decrease) by _____ percent.

Quizplus · Accepted Answer

The Answer of The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:
  The estimation results are presented below:
‪ 
-An 8 percent decrease in the price of R, holding all other variables constant, causes quantity demanded to _____________ (increase, decrease) by _____ percent.

The Following Log-Linear Demand Curve for a Price-Setting Firm Is