6. Recall the analysis of the demand for textiles in the Netherlands performed by renown econometrician Henri Theil, as discussed in Problem 8.9. With reference to the least squares-based estimate of the constant elasticity demand function generated from the data in the problem, respond to the following, using size .10 tests when testing is called for:

(a) Test the hypothesis that the matrix of explanatory variables is significant in explaining changes in the logarithm of textile demand.

(b) Test whether income is significant in explaining textile consumption. Plot the power function of the test, and interpret its meaning.

(c) Test whether price is significant in explaining textile consumption.

(d) Test whether the price elasticity is inelastic. Test whether the income elasticity is inelastic