This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Another commonly used algebraic form for a demand function is the semi-logarithmic functional form, ... (Read 314 times)

Pineappleeh

  • Hero Member
  • *****
  • Posts: 585
on: Jul 1, 2018
Another commonly used algebraic form for a demand function is the semi-logarithmic functional form, log(Q) = a - bP + cI, where Q is quantity demanded, P is the product price, and I is income.
 
  Here, -100b represents the percentage change in quantity demanded given a one unit increase in price. By the Law of Demand, we should expect the value of b to be: A) positive.
  B) negative.
  C) positive or negative.
  D) We do not have enough information to answer this question.

Question 2

Refer to Scenario 10.3. At the profit-maximizing level of output, demand is
 
  A) completely inelastic.
  B) inelastic, but not completely inelastic.
  C) unit elastic.
  D) elastic, but not infinitely elastic.
  E) infinitely elastic.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

scrocafella

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

D


Pineappleeh

  • Hero Member
  • *****
  • Posts: 585
Reply #2 on: Jul 1, 2018
Correct answers!


scrocafella

  • Sr. Member
  • ****
  • Posts: 346
Reply #3 on: Jul 1, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Stages of endometrial cancer. Stage I: Mutated cells arise from glandular epithelium of the endometr Stages of endometrial cancer. Stage I: Mutated cells arise from glandular epithelium of the endometr
Nephrolithiasis. Stones, or calculi, may form in several areas within the urinary tract. When they f Nephrolithiasis. Stones, or calculi, may form in several areas within the urinary tract. When they f
Functional groups Functional groups
Instructions for Completing the CMS-1500 (02/12) Claim Form Continued Instructions for Completing the CMS-1500 (02/12) Claim Form Continued
A standard employment application form may be used. A standard employment application form may be used.
Video: How a Urinalysis is Performed

For a complete list of videos, visit our video library