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 290 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?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

DNA molecules replicate to form identical chromatids DNA molecules replicate to form identical chromatids
Pairs of heavy and light chains combine to form a Y-shaped molecule Pairs of heavy and light chains combine to form a Y-shaped molecule
How to find the anti-derivative of a function (Part 2) How to find the anti-derivative of a function (Part 2)
The demand for oil can be reduced significantly with the introduction of new higher vehicle mileage The demand for oil can be reduced significantly with the introduction of new higher vehicle mileage
A $50 000 bond bearing interest at 6.5% bond payable semi-annually matures in 10 years. If it ... A $50 000 bond bearing interest at 6.5% bond payable semi-annually matures in 10 years. If it ...
The bacterium Escherichia coli is commonly referred to as E. coli. Seen here with multiple flagella The bacterium Escherichia coli is commonly referred to as E. coli. Seen here with multiple flagella
Video: System organization - PPM system types (Somatic, Autonomic & Enteric) and Reflex arc types

For a complete list of videos, visit our video library