economic interpretation

Question 3 (9 points) Let y, be the housing price in ($10,000) and x, be the squares feet (in 100 square-feet) of living area of the house. Consider a linear model of y, = B, + B,x, + e, , suppose a collection of data on 20 houses yields: y, = 8 +0.8x, x =15, y =20. (a) Give economic interpretation by . (b) The price elasticity is defined as n = percentage change in y , compute n at (x, y ), and give percentage change in x an economics interpretation of n. (c) What is the expected value of the housing price for a house of 2,000 square feet