The income elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price

The OLS estimator is derived by

A) connecting the Yi corresponding to the lowest Xi observation with the Yi corresponding to the highest Xi observation. B) making sure that the standard error of the regression equals the standard error of the slope estimator. C) minimizing the sum of absolute residuals. D) minimizing the sum of squared residuals.

A. increase the prices of U.S. imports but decrease the prices of U.S. exports

A. make Mexico's exports and imports both more expensive. B. make Mexico's exports more expensive and its imports less expensive. C. make Mexico's exports less expensive and its imports more expensive. D. increase Mexican exports.