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Using a Sample of 100 Consumers,a Double-Log Regression Model Was

Question 13

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Using a sample of 100 consumers,a double-log regression model was used to estimate demand for gasoline.Standard errors of the coefficients appear in the parentheses below the coefficients.
LnQ=2.450.67LnP+.45LnY.34LnPcars \operatorname { Ln } \mathrm { Q } = 2.45 - 0.67 \operatorname { Ln } \mathrm { P } + .45 \operatorname { Ln } \mathrm { Y } - .34 \operatorname { Ln } \mathrm { P } _ { \text {cars } }
(.20) (.10) (.25) \begin{array} { l l l }( .20 ) & ( .10 ) & ( .25 ) \end{array}


A) Gasoline is inelastic.
B) Gasoline is a normal good.
C) Cars and gasoline appear to be mild complements.
D) The coefficient on the price of cars (Pcars) is insignificant.
E) All of the coefficients are insignificant.

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