AREA	COMP	QRES	PRES	RES	INCOME
Texas	BAY CITY GAS CO	3750	498.7867	121235	22,300
Texas	ALTO CITY OF	32037	18.74208	692	17,346
Texas	ROMA CITY OF	7423	18.33639	1014	11,122
Texas	DILLEY CITY OF	309	359.2039	6168	11,706
Texas	FALFURRIAS UTIL CITY OF	20098	20.582	985	13,187
Texas	NEW SUMMERFIELD CITY OF	31905	10.44021	697	13,714
Texas	COTULLA CITY OF	535	321.7551	8889	13,928
Texas	PEARSALL CITY OF	21724	15.2924	944	14,102
Texas	HUGHES NATURAL GAS INC	240882	20.01613	3788	14,104
Texas	EASTON GAS SYS CITY OF	8142	8.726357	330	14,188
Texas	GRANDFALLS CITY OF	5802	7.416925	90	14,263
Texas	CITY OF SPUR	11950	10.21941	224	14,549
Texas	BRACKETVILLE MUN GAS	10941	16.90348	218	14,729
Texas	PINELAND CITY OF	6451	20.5007	268	14,803
Texas	HEMPSTEAD CITY OF	41162	10.64985	1001	15,119
Texas	ROBSTOWN UTIL SYS	101397	15.35899	3068	15,134
Texas	NAVASOTA CITY OF	60299	11.26831	1523	15,250
Texas	MORTON CITY OF	661	591.4796	41939	15,322
Texas	GARRISON CITY OF	11738	10.68998	246	15,468
Texas	HEMPHILL CITY OF	8695	14.91305	264	16,103
Texas	UVALDE GAS SYSTEM	45336	11.1512	1872	16,113
Texas	GEORGE WEST CITY OF	6554	20.22307	294	16,254
Texas	NEWTON CITY OF	445	512.8449	16822	16,811
Texas	SABINAL CITY OF	5443	24.22249	256	17,166
Texas	PLAINS CITY OF	436	515.7729	23788	17,801
Texas	PLAINS GAS FARMERS COOP	1723	6.517702	18	17,801
Texas	DAISETTA CITY OF	3026	16.64078	92	17,929
Texas	JOAQUIN MUN GAS CO	3838	12.27983	104	18,097
Texas	WOODVILLE CITY OF	25094	9.765522	772	18,359
Texas	BRENHAM CITY OF	3824	387.4971	133344	19,652
Texas	SPLENDORA CITY OF	8711	9.500631	237	20,014
Texas	CARRIZO SPRINGS CITY OF	13050	28.31479	822	20,173
Texas	SUNDOWN CITY OF	25177	10.20022	413	20,220
Texas	STOCKDALE CITY OF	7121	19.40711	242	20,583
Texas	WOODSBORO NATURAL GAS CORP	245056	0.803633	311	20,751
Texas	MCLEAN CITY OF	410	775.5585	32447	20,785
Texas	STERLING NATURAL GAS INC	335453	0.365962	177	20,799
Texas	LEFORS TOWN OF	292	586.5137	14894	21,102
Texas	WHITEFACE CITY OF	9193	8.397803	186	21,267
Texas	SEALY CITY OF	6621835	0.083228	1221	21,387
Texas	THREE RIVERS CITY OF	5775	15.03117	333	21,397
Texas	DENVER CITY GAS SYSTEM	64218	7.662867	1142	21,414
Texas	MARKHAM GAS CORP	7203	16.38706	245	21,503
Texas	KOUNTZE CITY OF	242	410.2851	7887	21,591
Texas	CHESTER GAS SYS	217	630.7097	8025	21,697
Texas	SWEENY CITY OF	945	473.3026	31979	21,850
Texas	PERRYTON CITY OF	267590	6.106611	3150	21,997
Texas	GARY NATURAL GAS SYSTEM	37866	13.59293	976	22,085
Texas	SAN ANTONIO PUB SVC BD	11585090	11.07481	314046	22,414
Texas	FORT STOCKTON CITY OF	97625	12.86875	2292	22,598
Texas	REKLAW NAT GAS SYS	60562	11.26229	966	22,688
Texas	COLUMBUS CITY OF	39351	12.85911	1085	22,828
Texas	LYTLE CITY OF	211372	0.811347	349	22,903
Texas	STINNETT CITY OF	35024	9.577804	613	23,770
Texas	BRAZORIA CITY OF	17125	12.25915	677	24,049
Texas	APPLEBY NATURAL GAS	68126	10.90328	458	24,613
Texas	CORPUS CHRISTI GAS DIV	1406289	5.712743	51469	24,676
Texas	CASTROVILLE CITY OF	24330	16.17135	738	24,700
Texas	BIG LAKE CITY OF	31055	16.93086	731	24,712
Texas	WALLER CITY OF	501	526.3792	18836	24,741
Texas	CENTERPOINT ENERGY ARKLA	783283	11.38399	12953	24,891
Texas	CENTERPOINT ENERGY ENTEX	76278458	11.053	1528562	24,891
Texas	BELLVILLE CITY OF	43990	10.77636	1177	25,004
Texas	HUXLEY CITY OF	1085	659.1069	60844	25,188
Texas	SUNRAY UTIL CITY OF	43849	9.869005	643	25,299
Texas	GRUVER CITY OF	481	663.3264	41579	25,499
Texas	UNIVERSAL NATURAL GAS INC	505551	9.67554	7037	26,176
Texas	CUSHING CITY OF	257	537.9144	9540	26,445
Texas	CHIRENO CITY OF	1289	540.2568	59977	27,096
Texas	CITY OF ALPINE GAS DEPT	64409	15.592	1706	27,454
Texas	RANKIN CITY OF	235	633.2766	12463	27,544
Texas	BOOKER CITY OF	184941	1.287838	515	27,715
Texas	IRAAN CITY OF	47130	4.903268	386	28,261
Texas	ROCKPORT CITY OF	95190	17.23778	4164	28,471
Texas	WHITE DEER CITY OF	30470	8.124877	393	28,864
Texas	TOMBALL CITY OF	102691	12.10356	2201	28,936
Texas	PORT ARANSAS CITY OF	28631	14.01041	857	34,357
Texas	GREY FOREST UTIL	630234	14.93179	12772	34,723
Texas	GOLDSMITH CITY OF	4929	8.167174	99	37,570

Question 21

1. Consider the following multiplicative demand function for residential gas utility customers in Texas: QRES = *PRES¹*RES²*INCOME³. QRES = residential MCF of gas consumed, PRES = residential price per mcf of gas, and INCOME = per capita income. Go to the data set above. You will find actual data for QRES, PRES, RES and INCOME ies.You may use Excel to sove the problem. Estimate the Texas residential gas demand function.

1a) What is the constant price elasticity of demand?

1b) What is the estimated residential gas INCOME elasticity of demand?