Determine price elasticity and income elasticity of demand


Demand function for air travel between the U.S. and Europe has been estimated to be

ln Q = 2.737 - 1.247 ln P +1.905 ln I

where Q denotes number of passengers (in thousands) per year, P the (average) ticket price and I the U.S. national income.

Determine the price elasticity and income elasticity of demand.

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Microeconomics: Determine price elasticity and income elasticity of demand
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