A study of expenditures on food in cities resulting in the following equation: l
ID: 1090823 • Letter: A
Question
A study of expenditures on food in cities resulting in the following equation:
ln E = 0.693 ln G + 0.224 ln N
where E is Food Expenditures; G is total expenditures on goods and services; and N is the size of the family. This evidence implies:
that as total expenditures on goods and services rises, food expenditures falls.
that a one-percent increase in family size increases food expenditures .693%.
that a one-percent increase in family size increases food expenditures .224%.
that a one-percent increase in total expenditures increases food expenditures 1%.
that as family size increases, food expenditures go down.
please show how you come up with the answer , do not just guess !!!
that as total expenditures on goods and services rises, food expenditures falls.
that a one-percent increase in family size increases food expenditures .693%.
that a one-percent increase in family size increases food expenditures .224%.
that a one-percent increase in total expenditures increases food expenditures 1%.
that as family size increases, food expenditures go down.
please show how you come up with the answer , do not just guess !!!
Explanation / Answer
that a one-percent increase in family size increases food expenditures .224%
reason: look at the coefficient of ln N, it is .224, thus if ln N increase by 1 %, E will increase by .224 %
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.