5.6 The table below has data for the price of pizzas and the quantity demanded at each price.

a. Use these data to estimate the demand curve for pizza. You want to report and discuss the estimated coefficients. Are they what you expected? How well does your estimated regression fit the data? Provide a figure if you think it would be useful.

b. Your manager knows that the elasticity of demand can help you make good decisions.
So once you have your demand curve, calculate the elasticity at a price of $10, $15, $20, $25, and $30. Carefully describe how you calculated the elasticity. How does the elasticity change along the demand curve? Using the estimated demand curve, over what price range is the demand elastic? At what price is the demand unit elastic? Over what price range is the demand inelastic?

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Accompanies problem 5.6. Quantity (pizzas per evening) Price (dollars) Quantity (pizzas per evening) Price (dollars) evening) 69 $30 92 $18 141 Quantity (pizzas per Price (dollars) $12 42 29 125 17 141 12 66 28 140 16 163 11 57 28 106 16 154 11 78 27 115 15 141 11 72 25 104 15 151 10 81 24 148 14 151 10 83 70 22 23 143 14 147 10 22 124 14 135 9 101 21 138 13 160 9 93 20 129 13 163 00 8 100 19 131 13 163 8 107 18 138 12 172 7