Question
In the context of a consumer's demand for a commodity, what is the cutoff price? How do the demand functions x = a - bp
In the context of a consumer's demand for a commodity, what is the cutoff price?
How do the demand functions x = a - bp and ln x = a - ln p differ with regard to the cutoff price?
Does either of them offer a plausible formula for the demand for milk?
Explain. How do the two demand functions differ with respect to the own-price elasticity of demand?
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
