Tutorials Flashcards
1
Q
Estimation of linear model
A
If x increases by 1 unit, y will increase by beta units
2
Q
Linear model readily shows the elasticities, which are constant
A
False
3
Q
Multiplicative model readily shows elasticities and they are constant
A
True
4
Q
To get the elasticity estimate in the linear model you use
A
beta*(P/Q)
5
Q
Estimation of multiplicative model
A
if x increases by 1%, y will increase by beta%
