1. If the income elasticity for designer scarves is 2.5, how would a 10% increase in income impact the consumption of scarves?
2. Suppose ETP, LLC has estimated its log-linear demand function for therapy as: Ln Therapy = 80-1.4 ln P +1.2 ln M + 0.4 ln Advt Assuming each of these variables is statistically significant, how would the consumption of therapy change if you simultaneously accounted for a 5% reduction in price, a 10% reduction in income and a 15% reduction in advertising?