Consider the following model Y=B1 + B2 In X₂ + B3 In X3 + u where Y- per capita consumption of tea, X₂ price of coffee (measured in dollars per pound), = X3 = price of sugar (measured in dollars per pound). Suppose coffee and tea are substitutes. What would be the sign of the coefficient B₂? OB2> 0 32 0 O B2=0 This cannot be determined with the amount of information given 4

Consider the following model Y=B1 + B2 In X₂ + B3 In X3 + u where Y- per capita consumption of tea, X₂ price of coffee (measured in dollars per pound), = X3 = price of sugar (measured in dollars per pound). Suppose coffee and tea are substitutes. What would be the sign of the coefficient B₂? OB2> 0 32 0 O B2=0 This cannot be determined with the amount of information given 4

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 2SQP

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