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You as an analyst in modeling consumer demand for specialty eggs in the United States is expecting to use a Log-Linear form demand function .
- You as an analyst in modeling consumer demand for specialty eggs in the United States is expecting to use aLog-Linear form demand function. Write down an expression for this type of demand function only considering quantity demanded, own-price of eggs and relevant intercept and slope parameters. Now, given this demand function, derive a formula for the own-price elasticity of demand for specialty eggs. Define all your variables and parameters used. (Recall the definition for a given variable x, dln(x)=dx/x
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