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I have post my assignment 4. just do question 2, 3,and 4.

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andersonnpet
School: Rice University

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Economic Questions
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Question 2
Part A
Given lnF^ = 1.82 +0.0204X
Y=C+MX
Let lnF=Y
When family A spends 10% more than family B,
A=ln 1 and B=ln 1.1
If F= expenditure and X= income
Equations will be
Family A
ln 1= 1.82+0.0204 X
Family B
Ln 1.1 = 1.82+ 0.0204X
Income of family A = (1.1-1.82) / 0.0204 = -89.2157 x 1000= -89,215.70
Inco...

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