Question 2 (1 point)

Assume that the following is the result of a demand estimation: ln Q = ln 20 - 5 ln P + 2 ln I Where I represents consumer income, P is the price, and Q is quantity demanded. If the only change was that the firm cut its price by 2.5%, what would be its change in units sold?

Question 2 options:

a)	rise of 17.5%

b)	rise of 7.5%

c)	rise of 12.5%

d)	rise of 5%