E Q 8 Tue Mar 1 9:46 AM Chrome File Edit View History Bookmarks Profiles Tab Window Help ... Houston, TX We X Bb Slides - 2022SF X Bb Slides - 2022SF X Microsoft Word X market share ca x Homework Help X Microsoft Word X Microsoft Word x + K ... - C D @ File | /Users/kennyphipps/Desktop/practice_midterm1_s2022.pdf 7 /9 1 - 84% + Microsoft Word - practice_midterm1_s2022.docx Question 4 (10 points, 5 points each) The table below shows the estimated substitution patterns in the personal computer market according to M. Goeree. Apple Apple Compaq Compaq Dell HP HP IBM IBM PowerBook* Power Mac Armada* Presario Latitude* Omnibook* Pavilion PC Thinkpad* 0.0213 0.0182 0.0165 PowerBook' 12.861 0.0692 0.0243 0.0287 0.0170 0.0219 Power Mac 0.0856 -11.097 0.0202 0.0222 0.0196 0.0202 0.0248 0.0298 0.0364 Armada 7xxx* 0.0150 0.0107 -5.7066 0.0193 0.0606 0.0209 0.0203 0.0162 0.0426 0.0125 -3.6032 0.0230 0.0272 0.0308 0.0348 0.0385 Presario 2xxx 0.0122 ).0272 Latitude XPI* 0.0263 0.0274 0.0357 0.0261 -5.5701 0.0225 0.0217 0.0394 0.0453 Omnibook 4xxx* 0.0179 0.0147 0.0363 0.0298 0.0228 -5.6501 0.0269 0.0222 0.0499 0.0153 0.0336 0.0167 0.0227 -5.1178 0.0396 0.0359 Pavilion 6xxx 0.0118 0.0212 0.0322 0.0137 0.0381 0.0153 0.0148 -3.2626 0.0215 PC 3xxx 0.0137 0.0425 0.0291 Thinkpad 7xxx* 0.0330 0.0192 0.0376 0.0195 0.0304 0.0297 -6.9745 Notes: Sample from 1998. * indicates laptop. Entries give % change in market share of row brand with a 1% change in price of column brand a) Which product has the most elastic demand? Explain. b) Based on the table, what is the closest substitute of Compaq Armada? Explain. 176 MAR 1 4