Answer Questions 41-43 based on the following:

The demand function for JZ bicycles in Super City has been estimated to be:

Q=4,000 -11P+30I

Below is additional information concerning this Regression:

Standard Error (SE) of the Intercept coefficient = 700

Standard Error (SE) of the price coefficient = 0.64

Standard Error (SE) of the Income coefficient = 1.40,

R-Square = 0.64,

Adjusted R-Square = 0.61,

F-Statistic = 31.402,

Qis quantity demanded of JZ bicycles per year,Pis the price of a JZ bicycle in dollars, andI

is annual income in thousands of dollars.

41) Which the two independent variables appears to be statistically significant (at the 5% level) in explaining bicycle sales?

A) price and income ar both significant at 5% level.

B) only the price is significant at 5% level.

C) only income is significant at 5% level.

D) both independent variables are insignificant at the 5% level

42)When P = $300 and I = 30 (for income,use 30 and not 30,000 in the calculations), the pointPrice Elasticity of Demand is equal to

A) -1.6 B) -0.6 C) -2.06 D) -0.206

43)When P = $300 and I = 30 (for income,use 30 and not 30,000 in the calculations), the43)Income elasticity of demand is equal to

A) -0.56 B) 0.56 C) 1.56 D) -1.56