1) Conceptual Exercise: Assume that in addition to orange juice, you also observe demand for bananas. a. What regression would you run to determine if bananas and orange juice are compliments or substitutes? What is the coefficient of interest (i.e. on what variable) that would inform you? b. Assume you find they are substitutes. What would the sign of the coefficient be? Would you be more or less likely to bundle these products if they are substitutes? i. Explain why with an equation, figure or a sentence or two. ii. Would the price of the bundle be less than or more than the sum of the two independent prices? (Not a trick question; verifying you understand bundles.) c. During a sale for orange juice, should you continue to offer the bundle at the same price? Why or why not? HINT: who is price sensitive for orange juice? Who comes into market