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The demand function below is estimated using the data generated by a randomized controlled trial: Lnqxd=a+b*Lnpx+c*LnpY+d*Lnpz+e where qxd is the quantity demanded of the product
The demand function below is estimated using the data generated by a randomized controlled trial: Lnqxd=a+b*Lnpx+c*LnpY+d*Lnpz+e where qxd is the quantity demanded of the product of interest (X), px is the price of the product of interest (X), py is the price of a substitute product (Y), and pz is the price of a complement product (Z). Also, e is the error term. Parameter b is statistically significant and is estimated to be equal to -0.05, with a very small standard error. A 10 percent increase in px is expected to reduce qxd by _____ percent. (Note: Round your answer to only one decimal points.)
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