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 257 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?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Deity form of Varaha, Khajuraho, 12th C AD Deity form of Varaha, Khajuraho, 12th C AD
Functional divisions of the peripheral nervous system Functional divisions of the peripheral nervous system
Instructions for Completing the CMS-1500 (02/12) Claim Form Continued Instructions for Completing the CMS-1500 (02/12) Claim Form Continued
A form that the customer should fill out if there is a driveablilty concern to help the service ... A form that the customer should fill out if there is a driveablilty concern to help the service ...
How to use the squeeze theorem to find the limit of a function How to use the squeeze theorem to find the limit of a function
Prove that each of the following real functions f has a discontinuity. For each function, ... Prove that each of the following real functions f has a discontinuity. For each function, ...
Video: Vascular tissues in a corn stem and a buttercup root

For a complete list of videos, visit our video library