In the demand curve regression model of Equation (12.3), is
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In the demand curve regression model of Equation (12.3), is ln(Pbutter i ) positively or negatively correlated with the
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In the demand curve regression model of Equation (12.3), is ln(Pbutter i ) positively or negatively correlated with the error, ui ? If b1 is estimated by OLS, would you expect the estimated value to be larger or smaller than the true value of b1? Explain.
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