No 1 A study of cigarette demand resulted in the following regression equation: Q = 2.55 29P 0.9Y + 0.8A 0.1W (-2.07) (-1.05) (4.48) (-5.2) Here, Q denotes annual cigarette consumption; P is the average price of cigarettes, Y is percapita income, A is total spending on cigarette advertising, and W is a dummy variable whose value is 1 for years after 1963 (when the American Cancer Society linked smoking to lungcancer) and 0 for earlier years. The t-statistic for each coefficient is shown in parentheses. The R of the equation is 0.94. (a) Which of the explanatory variables have real effects on cigarette consumption?Explain. (b) What does the coefficient of P represent? If cigarette prices increase by 1 percent,how will this affect consumption? (c) Are cigarette purchases sensitive to income? Explain