COMP	QRES	PRES	RES	INCOME
ALTO CITY OF	32037	18.742079	692	17,346
BRACKETVILLE MUN GAS	10941	16.903482	218	14,729
CARRIZO SPRINGS CITY OF	13050	28.314789	822	20,173
CITY OF SPUR	11950	10.219414	224	14,549
DAISETTA CITY OF	3026	16.64078	92	17,929
EASTON GAS SYS CITY OF	8142	8.7263572	330	14,188
FALFURRIAS UTIL CITY OF	20098	20.581998	985	13,187
GARRISON CITY OF	11738	10.689981	246	15,468
GEORGE WEST CITY OF	6554	20.22307	294	16,254
GRANDFALLS CITY OF	5802	7.4169252	90	14,263
HEMPHILL CITY OF	8695	14.913053	264	16,103
HEMPSTEAD CITY OF	41162	10.649847	1001	15,119
HUGHES NATURAL GAS INC	240882	20.016128	3788	14,104
JOAQUIN MUN GAS CO	3838	12.279833	104	18,097
NAVASOTA CITY OF	60299	11.268313	1523	15,250
NEW SUMMERFIELD CITY OF	31905	10.440213	697	13,714
PEARSALL CITY OF	21724	15.292396	944	14,102
PINELAND CITY OF	6451	20.500698	268	14,803
PLAINS GAS FARMERS COOP	1723	6.5177017	18	17,801
ROBSTOWN UTIL SYS	101397	15.358995	3068	15,134
ROMA CITY OF	7423	18.336387	1014	11,122
SABINAL CITY OF	5443	24.222488	256	17,166
SPLENDORA CITY OF	8711	9.5006314	237	20,014
STERLING NATURAL GAS INC	335453	0.3659618	177	20,799
STOCKDALE CITY OF	7121	19.407106	242	20,583
SUNDOWN CITY OF	25177	10.200222	413	20,220
UVALDE GAS SYSTEM	45336	11.151204	1872	16,113
WHITEFACE CITY OF	9193	8.3978027	186	21,267
WOODSBORO NAT GAS CORP	245056	0.8036326	311	20,751
WOODVILLE CITY OF	25094	9.7655216	772	18,359

Use the gas data in question #3 and Excel Regression Data Analysis to estimate the following multiplicative model of Texas Natural Gas Utility Residential Demand. Then answer the questions that follow based on your estimate of demand function (2). (2) QRES = *PRES 1*RES2*INCOME3

4a. (2 Points) Write out the estimated multiplicative function (2) based on your estimates of , 1, 2 and 3. Write your answers in 4a above. 4a. (2 Point) = ________ 1 = _______ 2 = _______ 3 = _______

4b. (1 Point) In one sentence, what does the estimated price elasticity of demand tell you regarding typical profit-maximizing behavior for Texas Gas Utilities? Write your answer in 4b above. 4b.

(1 Point) One Sentence Discussion = 4c. (1 Point) If PRES = 10, RES = 300 and INCOME =20,000, what is the predicted quantity demanded? Write your answer in 4c above. 4c.

(1 Point) Predicted QRES = _____ 4d: (1 Point) If PRES = 10, RES = 300 and INCOME =20,000, what is the marginal change in QRES with respect to a one (1) unit change in price? This answer will be an actual (single) number, not a mathematical expression/function Write your answer in 4d above. 4d. (1 Point) Marginal Change = _______