Estimated its log-linear demand function for therapy

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1. If the income elasticity for designer scarves is 2.5, how would a 10% increase in income impact the consumption of scarves?

2. Suppose ETP, LLC has estimated its log-linear demand function for therapy as: Ln Therapy = 80-1.4 ln P +1.2 ln M + 0.4 ln Advt Assuming each of these variables is statistically significant, how would the consumption of therapy change if you simultaneously accounted for a 5% reduction in price, a 10% reduction in income and a 15% reduction in advertising?

Reference no: EM131236969

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Estimated its log-linear demand function for therapy : Suppose ETP, LLC has estimated its log-linear demand function for therapy as: Ln Therapy = 80-1.4 ln P +1.2 ln M + 0.4 ln Advt Assuming each of these variables is statistically significant, how would the consumption of therapy change if you simultane..

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