4. Your company, which specializes in porcine hygiene products (HogWash), has the following demand function:

Q = a + bP + cM + dR

where Q is the quantity demanded of HogWash's most popular soap for pigs, 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	0.8300
Independent Variables	Coefficients	Standard Error	t Stat	P-value
Intercept	10,622.29	67.06	158.40	6.73E-48
P	-9.741	2.157	-4.516	0.000
M	-0.0053	0.001	-3.862	0.001
R	2.15	0.959	2.238	0.032

1. Discuss whether you think these regression results will generate good sales estimates for HogWash.

Now assume that the income is $58,717, the price of the related good is $9.35, and HogWash chooses to set the price of its product at $12.75.

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 5%, what would happen (in percentage terms) to quantity demanded?

e. If M increases by 3%, what would happen (in percentage terms) to quantity demanded?

f. If R decreases by 4%, what would happen (in percentage terms) to quantity demanded?