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Express the price elasticity of demand

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Reference no: EM131131883

Given the following demand curve

ln(Qt) = b0 + b1ln(Pt) + b2ln(Yt) + ut

where Qt and Pt are the quantity (number) and price of haircuts obtained in Cambridge in year t and Yt is mean income in Cambridge in year t.

Express the price elasticity of demand in terms of the coefficients in (1).

Reference no: EM131131883

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