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Page 3 of 3 points total) In your work for the pizza franchiser, you've also estimated a linear Furand function. The following is a simplified

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Page 3 of 3 points total) In your work for the pizza franchiser, you've also estimated a linear Furand function. The following is a simplified version of your regression results for the linear demand functions ( = 2010 -2609P + 1.004 + 1.50) where, once again, Q is quantity demanded (measured in number of pizzas sold per month), P is price (measured in $/pizza), A is advertising expenditure (measured in S/month), and Y is disposable income per household (measured in S/ month). Consider a pizza outlet where: P = $15.00 A = 520,000 Y = $33.000 (a) (3 points) Use these regression results to calculate the projected level of pizza demand for this outlet i.e., the projected level of Q (Show your calculations.) (b) (3 points) Using your answer to part (a) and other information given above, calculate the point price elasticity of demand for pizza at this outlet. (Show your calculations.) (e) (3 points) Using your answer to part (a) and other information given above. calculate the point income elasticity of demand for pizza at this outlet. (Show your calculations.) The End

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