Question
Suppose the demand for x1 is x1 = p1ap2bmc, where p1 and p2 are prices of x1 and x2, respectively and m is income. What
Suppose the demand for x1 is x1 = p1ap2bmc, where p1 and p2 are prices of x1 and x2, respectively and m is income. What are the values of the own-price, cross-price and income elasticities of demand in this equation? Write the estimable form of this demand equation. What restrictions must govern the magnitudes of the coefficients to ensure the demand function you estimate is homogeneous of degree zero?
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
