While working with the sales manager of your firm you have estimated the following model of sales volume as a function of monthly household income: (0.781)(0.392) Where Q is monthly sales volume,I is monthly household income in thousands,and standard errors are listed below the parameter estimates.
What is the income elasticity of your firm's product?
A)1.212
B)2.206
C)3.418
D)4.630

Question

While working with the sales manager of your firm you have estimated the following model of sales volume as a function of monthly household income:  (0.781)(0.392) Where Q is monthly sales volume,I is monthly household income in thousands,and standard errors are listed below the parameter estimates.
What is the income elasticity of your firm's product?
A)1.212 
B)2.206 
C)3.418 
D)4.630

Quizplus · Accepted Answer

The Answer of While working with the sales manager of your firm you have estimated the following model of sales volume as a function of monthly household income:  (0.781)(0.392) Where Q is monthly sales volume,I is monthly household income in thousands,and standard errors are listed below the parameter estimates.
What is the income elasticity of your firm's product?
A)1.212 
B)2.206 
C)3.418 
D)4.630

While Working with the Sales Manager of Your Firm You