Exhibit 16.5.The following data shows the demand for an airline ticket dependent on the price of this ticket. For the assumed cubic and log-log regression models,Demand = β₀ + β₁Price + β₂Price² + β₃Price³ + ε and ln(Demand)= β₀ + β₁ln(Price)+ ε,the following regression results are available: Refer to Exhibit 16.5.Using the log-log model,what is the predicted demand when the price is $200? A)10874.92 B)9201.45 C)7849.25 D)12499.98

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The Answer of Exhibit 16.5.The following data shows the demand for an airline ticket dependent on the price of this ticket. For the assumed cubic and log-log regression models,Demand = β₀ + β₁Price + β₂Price² + β₃Price³ + ε and ln(Demand)= β₀ + β₁ln(Price)+ ε,the following regression results are available: Refer to Exhibit 16.5.Using the log-log model,what is the predicted demand when the price is $200? A)10874.92 B)9201.45 C)7849.25 D)12499.98