An elasticity coecient is the ratio of the percentage change in the forecast variable (x) to the percentage change in the predictor variable ( ). Mathematically, the elasticity is dened as (dy/dx) ×...

An elasticity coecient is the ratio of the percentage change in the forecast variable (x) to the percentage change in the predictor variable ( ). Mathematically, the elasticity is dened as (dy/dx) × (x/y). Consider the log-log model,

Express y as a function of x and show that the coecient
 is the elasticity coecient.