Which of the following demand functions represents a price elasticity
Which of the following demand functions represents a price elasticity of demand equal to -0.33 and an income elasticity of demand equal to 0.8 at all points along the curve?
A) Q = 3 – 0.33P + 0.8I
B) Q = 4.5 – 0.33 log(P) + 0.8I
C) log(Q) = 1.34 – 0.33 log(P) + 0.8I
D) log(Q) = 2.34 – 0.33 log(P) + 0.8 log(I)
ANSWER
D
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