Demand estimation problem

Suppose you run a small boutique winery that produces one kind of red wine that you predominantly sell to area restaurants and three nearby counties. You have 50 quarters of data on the following:

The quantity of cases sold that quarter (Qx)

The price you charged per bottle (Px)

The average price of a meal at the restaurants that purchase your wine (Py)

The average price of the white wine sold by another boutique winery that only produces white wine and sells to most of the same restaurants as you do. (Pz)

The average income level of households in three nearby counties (M) - the numbers are the number of thousands (e.g. 42 = 42,000)

Your advertising expenditures (A) - the numbers are the number of hundreds (e.g, 5 = 500)

Please place your results within the excel data file and upload the file with your results below.

1. (10 pts) Estimate demand for your wine using the above variables. Within the excel file with the data, put the results in separate tab and name the tab "results"

2. (10 pts) Within the excel file with the data, in the tab "demand curve" , show the quantity demanded at each price per bottle (from Px=0 to Px=25) assuming all other variables = 0. Recall that the intercept shows the quantity demanded when Px=0.

3. (5 pts) Next to the demand curve data, in the column entitled "own-price elasticity" place your calculations for own-price elasticity at each Px from 1 to 25.

Qx	Px	Py	Pz	M	A
411	10	25	15	42	4
400	7	24	14	42	5
348	10	35	11	38	5
344	15	26	13	39	6
411	7	31	10	42	5
391	10	26	9	41	5
345	20	32	11	41	5
361	10	20	13	40	4
321	16	23	10	35	6
360	12	38	14	41	6
326	21	20	13	35	5
318	8	35	10	36	6
374	9	29	13	40	6
367	7	26	9	39	4
319	20	25	7	40	4
418	9	32	6	45	3
335	17	23	13	39	6
407	7	30	10	42	4
405	9	20	7	42	6
357	5	23	7	37	6
410	17	25	13	45	6
311	13	34	10	35	3
371	10	34	9	40	6
391	8	29	7	44	5
340	24	26	6	40	5
391	15	28	6	43	4
402	16	26	11	45	5
373	20	26	12	43	6
368	22	24	8	42	4
390	21	34	9	45	6
341	18	29	11	42	4
375	24	27	6	42	5
326	14	20	14	35	6
313	17	32	14	35	6
320	25	20	8	37	4
415	22	22	7	40	6
303	15	30	8	36	6
335	25	25	6	39	5
320	18	35	13	40	4
401	11	21	13	42	6
379	10	31	13	40	5
418	13	23	13	44	6
320	22	33	7	38	4
363	20	27	7	41	6
364	5	20	13	39	5
374	22	30	15	43	7
405	10	26	7	44	5
384	10	27	11	42	6
360	7	30	9	36	5
344	12	20	6	35	7

Qx	Px	own-price elasticity
	0			Round numerical values to the second decimal place. For example, 5.4678 rounds to 5.47
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