where log P is the natural log of the products price log Q is the natural log of quantity sold and log M is the natural log of money income a Discuss the use of Rsquared and adjusted Rsquare for evaluating the fit of this equation b Is this equation consistent with the law of demand c Is the superior or inferior good d Is the ED estimated consistent with profit maximization e What would be the effect of a 1 percent increase in price f Counts double If the price of money income falls by 2 p
