The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:
The estimation results are presented below:
‪
-All else constant, a 22 percent increase in price causes quantity demanded _____________ (increase, decrease) by _____ percent.

Question

The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:
  The estimation results are presented below:
‪ 
-All else constant, a 22 percent increase in price causes quantity demanded _____________ (increase, decrease) by _____ percent.

Quizplus · Accepted Answer

The Answer of The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:
  The estimation results are presented below:
‪ 
-All else constant, a 22 percent increase in price causes quantity demanded _____________ (increase, decrease) by _____ percent.

The Following Log-Linear Demand Curve for a Price-Setting Firm Is