1. Southern Cotton International is a textile company. It offers two main products. Its marketing department has recently estimated the demand rnction, cing SCI: Demand for product 1: Lat-31d = on + 15'1an + osans + cLpc + E anld is the M135 demanded for product 1 (in natural log)= Luplis the price of product 1 (in natural log), Laps is the price of product l's substitute (innatural log}= Lupc is the price of product 1's complement (in natural log), and a is the errorhg Parameter 31 is estimated to be equal to 43.45 (wia standard error being equal to {115). Demand for product 2: anz': = on + anpg + agans -I- oanp; + a anEd is the quantity demanded for product 2 (in natural log)= anzis the price of product 2 (in natural log}, Laps is the price of product 2's substitute (in natural log}= anc is the price of product 2's complement (in natural log), and .s is the mug-rig Parameter 32 is estimated to be equal to 4165 (with standard error being equal to {1&5}- a. How much does the demand for product 1 increase if SCI reduces its price by 5%? Describe your answer in percentages- b. How much does the demand for product 2 increase if SCI reduces its price by 5%? Describe your answer in percentages c. 'Which one of the above products has a more sensitive demand? Explain your answer in a short paragraph. d. Consider the demand for product 1 (or product 2}. Which one of the parameters below is expected to be less than zero: as or :15? Explain your answer in a short paragraph