. A survey was conducted among customers of a company's pineapple juice.

A linear demand regression model based on Ordinary Least Squares Estimates have the following results:

Q_D = 10,425 - 2910P_X + .028A + 11,100 Pop

(1.010) (0.004) (3.542)

where PX = price of pineapple juice

A = advertising expenditure

Pop = percentage of young adults in the relevant market area.

i. Determine the price elasticity for prices of $5 and $10, when A = $1,000,000 and Pop = 0.5.

ii. Determine the advertising elasticity at an advertising level of $2,000,000, if price remains at $5 and Pop at 0.5.

iii. The standard error for each coefficient is given in parentheses. If you know that the demand function was estimated using 25 observations, can you reject the hypotheses at the 95 percent confidence level, that there is relationship between each of the independent variables with QD?