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 167 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?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

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?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Functional groups Functional groups
Functional divisions of the nervous system. Functional divisions of the nervous system.
Physical Fitness Profile Form. Physical Fitness Profile Form.
standard reduction potential (Eo), the greater the tendency of the oxidized form of a redox couple standard reduction potential (Eo), the greater the tendency of the oxidized form of a redox couple
The growth in demand for oil in China is driven by the growth in demand for personal transport The growth in demand for oil in China is driven by the growth in demand for personal transport
Ferns disperse by releasing spores that form on the underside of leaves. Ferns disperse by releasing spores that form on the underside of leaves.
Video: Neurotransmission at chemical synapses & Excitory and inhibitory potentials

For a complete list of videos, visit our video library