Dave is also wondering how his sales might be impacted by the presence of Primrose Brewery, another local brewing company. Dave has also been tracking sales of Primrose in Geneva over the past 4 years. Primrose's data is in the same excel file under the tab labeled Data for Primrose." Dave has asked you to do the following: (1) Copy and paste Primrose's monthly data on PRICE into the GBC-Geneva data (this should be an additional column in the file, inserted next to the "Income (Geneva)" column). Re-run the demand regression for GBC's Geneva market with this new variable included as an additional regressor. Write out the new demand function, with the price of Primrose beer as an additional variable in the function. Note: Your demand functions should like this: Q = a + bP + cM + dP(PR), where Q= quantity demanded, P=price, M=income, and P(PR) = Price of Primrose beer. Now you will get a, b, c, and d from the regression equation. (2) Calculate the cross-price elasticity between GBC brew and Primrose brew in the Geneva market (at average values of all relevant variables). What does this tell you about the relationship between GBC and Primrose beer? (3) Dave has been informed that Primrose plans to raise their prices by 5% next month. Predict the impact of this change on quantity demanded of GBC beer in Geneva (i.e. percent change is ok here). SUMMARY OUTPUT Regression Statistics Multiple R 0.871893461 R Square 0.760198207 Adjusted R Square 0.74455896 Standard Error 3.970488433 Observations 50 ANOVA df SS Regression 3 2298.900194 Residual 46 Total 49 725.1798061 3024.08 MS 766.3000646 48.60836261 15.76477839 F Significance F 2.6315E-14 Coefficients Standard Error Intercept 92.91767949 14.30790922 Price (GBC Geneva) -2.482530752 0.257554375 t Stat 6.494147963 -9.638860721 P-value 5.24286E-08 1.29388E-12 Lower 95% Upper 95% Lower 95.0% Upper 95.0% 64.117352 -3.0009608 121.718007 -1.9641007 64.117352 -3.0009608 121.718007 -1.9641007 Income (GBC Geneva) Price (Primrose) 2.078489357 0.268145529 7.751348185 6.89454E-10 1.5387404 2.61823831 1.5387404 2.61823831 0.153534272 0.305839909 0.502008624 0.618056021 -0.4620895 0.76915808 -0.4620895 0.76915808