1. You have hypothesized that the general form of the demand function is 0d: f(P, T) where P is the price of ice cream cones and T is average temperature. Based on your regression analysis, write out your estimate of the specific form of the demand for your company's new snack. In other words, if Qd=a + blP + bZT, what values do a, bland b2take? (Hint: what should the sign on blbe, based on the Law of Demand?) (30 pts) 2. Assume the average high temperature will be 80 next year. Draw the demand curve. Be careful to put P on the vertical axis and Q on the horizontal axis. This will probably require rearranging your data so that P looks like a function of 0. Excel, for example, will by default assume that if your data is in two columns, the first column is your X or independent variable. Please label the vertical intercept (above what price will 0 units be sold) and the horizontal intercept (if P=0, how many units are 'sold'). Create a graph in Excel or some other software, and embed the image in the space provided below. Do not submit a photo or any separate file (.jpg or similar). (30 pts) Embed Image: 3. A co-worker suggests charging $2.50 per snack. Do you agree? Calculate the price elasticity of demand if you charge $2.50 (still assuming an average temperature of 80 degrees). Use that calculation to argue whether you should charge a price of $2.50, more than $2.50, or less than $2.50. {20 pts) What price would maximize revenue if your estimate of demand is correct? How did you arrive at this price? (20 pts)