Input the following data into Excel.

Or, you may open the Regression Homework Q1 data Excel file

Assume that Q = quantity of pizza, Price = price of pizza (in cents), Tuition = tuition (in thousands of dollars), Price of Soft Drink = price of soft drinks (in cents):

QPriceTuitionPrice of Soft Drink

1010014120

121001695

13908110

1495790

911011100

81255100

412512125

315010150

158018100

12801290

1390680

15100575

1211013100

1011010125

1012514130

121101580

1115016 90

121001295

1015012100

81601090

91501395

1013515100

111251695

1210017100

137510100

1010012110

91106125

81251090

8150580

41001095

a)Estimate the linear demand function with Q as the dependent variable and Price as the independent

variable. Comment fully on the results and discuss the identification problem.

b)Estimate the linear demand function with Q as the dependent variable and Price, Tuition, Price of Soft

Drinks, as the independent variables. Comment fully on the results.

c)Take the natural logarithm of all the variables and estimate the new demand function. Comment fully on

the results. What is the value of the price elasticity of demand? What is the value of the cross-price

elasticity of demand?