Determine the Elasticity of Demand of Cars with respect to price of cars, price of gasoline and the GDP.
A client has provided data on the price of cars, the price of gasoline, the quantity of new cars sold in USA. Gross Domestic Product per capita is also observed. Using regression technique, use the data to estimate the following log linear market demand equation for new cars. ln Q(cars) = 5 - 2.4 ln P(cars) - 1.2 ln P(gasolin