Another commonly used algebraic form for a demand function is the semi-logarithmic functional form, ln(Q) = a - bP + cI, where Q is quantity demanded, P is the product price, and I is income
Here, 100 c represents the percentage change in quantity demanded given a one unit increase in income. For a normal good, we should expect the value of c to be: A) positive.
B) negative.
C) positive or negative.
D) We do not have enough information to answer this question.
A
Economics
You might also like to view...
In the opinion of many people, ________ is the main problem of international law.
Fill in the blank(s) with the appropriate word(s).
Economics
When UPS implemented changes which allowed it to deliver more packages with the same number of workers and planes, this represented a positive technological change
Indicate whether the statement is true or false
Economics