1.(2 points) Suppose you estimate a demand curve for chicken and you obtain the following results: In(chicken) = 0.83 - 0.48*In(price chicken) +0.75*income. In this model, "chicken" is
measured in pounds of chicken purchased per year, price chicken is measured in dollars ($), and
income is measured in thousands of dollars per year ($1,000). The function "In” refers to natural
log (log base “e", or approximately 2.718). Based on this information, answer the following
questions
a. Evaluate the effects of a 1 percentage point increase in the price of chicken on the quantity of
chicken demanded. Show your work.
b. Evaluate the effects of a $1,000 increase in income on the quantity of chicken demanded.
Show your work