1. Compute the price elasticity of demand to determine whether the demand for organic apples is elastic or inelastic.
2. f. Organic apples and regular apples are substitutes. Confirm this by computing the cross-price elasticity of demand.
3. g. Do the variables in the demand function take the expected sign? Explain.

A B E G . | 1 1 SUMMARY OUTPUT 2 3 Regression Statistics 4 Multiple R 0.10248974 5 R Square 0.01050415 6 Adjusted RSq -0.0016818 7 Standard Erro 2.85352188 8 Observations 412 1 1 1 1 I 9 1 1 1 10 ANOVA 11 12 Regression 13 Residual 14 Total 15 df SS MS F Significance F 5 35.0941945 7.01883889 0.86199126 0.50665963 406 3305.89037 8.14258712 411 3340.98456 16 17 Intercept 18 ecopre 19 regprc 20 hhsize 21 faminc Coefficients standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% 1.77675277 0.83209285 2.13528187 0.03333595 0.14100453 3.412501 0.14100453 3.412501! -1.4976047 0.85760611 -1.7462617 0.08152179 -3.1835075 0.1882981 -3.1835075 0.18829811 2.07275955 1.03278243 2.00696632 0.0454157 0.04249088 4.10302821 0.04249088 4.10302821 0.0223648 0.09776019 0.22877204 0.81916128 -0.1698145 0.21454414 -0.1698145 0.21454414 0.00086932 0.00381005 0.22816368 0.81963386 -0.0066206 0.00835921 -0.0066206 0.00835921 0.00477943 0.01008622 0.47385764 0.63585615 -0.0150483 0.02460718 -0.0150483 0.02460718 22 age 23