8.5 Read the box “The Demand for Economics Journals” in Section 8.3.

a. The box reaches three conclusions. Looking at the results in the table, what is the basis for each of these conclusions?

b. Using the results in regression (4), the box reports that the elasticity of demand for an 80-year-old journal is -0.28.

i. How was this value determined from the estimated regression?

ii. The box reports that the standard error for the estimated elasticity is 0.06. How would you calculate this standard error?

(Hint: See the discussion “Standard errors of estimated effects” on page 310.)

c. Suppose that the variable Characters had been divided by 1000 instead of 1,000,000. How would the results in column (4) change?