Please no written by hand and no emage Your company, which specializes in running shoes for men who are growing increasingly follicly-challenged (BalderDash®), has the following demand function: Q = a + bP + cM + dR where Q is the quantity demanded of BalderDash’s most popular shoes, P is the price of that product, M is consumer income, and R is the price of a related product. The regression results are: Adjusted R Square 0.7796 Independent Variables Coefficients Standard Error t Stat P-value Intercept 21,055.04 1428.27 14.74 8.1E-16 P -83.912 19.079 -4.398 0.000 M 0.0266 0.013 2.064 0.047 R -16.6 10.664 -1.556 0.129 Discuss whether you think these regression results will generate good sales estimates for BalderDash. Now assume that the income is $69,100, the price of the related good is $39, and BalderDash chooses to set the price of its product at $54. b. What is the estimated number of units sold given the data above? (round to nearest unit; no decimals) c. What are the values for the own-price, income, and cross-price elasticities?
Please no written by hand and no emage
Your company, which specializes in running shoes for men who are growing increasingly follicly-challenged (BalderDash®), has the following
Q = a + bP + cM + dR
where Q is the quantity demanded of BalderDash’s most popular shoes, P is the
| Adjusted R Square | 0.7796 | |||
| Independent Variables | Coefficients | Standard Error | t Stat | P-value |
| Intercept | 21,055.04 | 1428.27 | 14.74 | 8.1E-16 |
| P | -83.912 | 19.079 | -4.398 | 0.000 |
| M | 0.0266 | 0.013 | 2.064 | 0.047 |
| R | -16.6 | 10.664 | -1.556 | 0.129 |
Discuss whether you think these regression results will generate good sales estimates for BalderDash.
Now assume that the income is $69,100, the price of the related good is $39, and BalderDash chooses to set the price of its product at $54.
b. What is the estimated number of units sold given the data above? (round to nearest unit; no decimals)
c. What are the values for the own-price, income, and cross-price elasticities?
d. If P increases by 6%, what would happen (in percentage terms) to quantity demanded?
e. If M increases by 2%, what would happen (in percentage terms) to quantity demanded?
f. If R decreases by 3%, what would happen (in percentage terms) to quantity demanded?
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