題組內容

II. QUESTIONS: (20%, each question 4%) Lee Da-Qian estimates the empirical results for instant noodles for the logarithmic demand function as follows:

However, Wang Xiao-Qian estimates the empirical result of instant noodles is a straight line demand function as follows:

Where D is demand of instant noodles, Y is income, P is price of instant noodles, D is days of raining in a year, F is sale amount of fried pork noodles. The number in parentheses is the t-value.
Questions:

3. What is the price elasticity of demand for instant noodles? Lee Da-Qian or Wang Xiao-Qian will claim that it owns price elasticity of demand, who do you believe in? If the price of noodles reduced, the company's revenue will increase or will decrease? Why?