Paul owns a food truck that specializes in northern french cousine and he has noticed he faces weak competition due to the unique nature of his food. Paul was charging $7 per meal when he decided to run an experiment and charge different prices at different locations for one month In this excel sheet, you will find the information that was collected. Where Q represents the quantity of meals sold, P represents the price Paul decided to charge in that location, Y is the average weakly earnings of the typical household in the corresponding neighborhood, and P5 represents the average price of the (substitute) meals offered by the competing vendors in each location. 1- Use the data provided to estimate the demand equation that Paul's food truck is facing using the Excel regression tools of data anaylsis, Use P, Y, and P5 as the independent variables. Present your results in a separate sheet. 2 - Are the coefficients obtained statistically different than zero at the 5% level of significance? Based on these coefficients, is the competition truly not an important factor in Pauls sales? Based on these coefficients, what would be your preferred specification of the demand equation (write down an equation using only the first two decimal places for each estimated coefficient)?. Explain. 3- Using the parameters from the demand equation you previously specified, calculate the price elasticity of demand at P=7 for a rich neighborhood where the averate weakly earnings equal $800, What can Paul expect would happen to sales in that neighborhood, if he was to increase his price from $7 to $8? Explain your answer. 3.] Using the estimated demand equation, calculate the expected sales for P=7 and P=8 in order to verify your answer. 4- Using the parameters from the demand equation you previously specified, calculate the price elasticity of demand at P=7 for a poor neighborhood where the averate weakly earnings equal $400. What can Paul expect would happen to sales in that neighborhood, if he was to increase his price from $7 to $8? Explain your answer. 4.] Using the estimated demand equation, calculate the expected sales for P=7 and P=8 in order to verify your answer. 5- Paul is expecting a national recession to affect his sales next year for all neighborhoods, since he beleives his meals are a normal good. Based on your estimations, is he right to expect that? Explain, 599.5 510.0 417.0 520.5 455.8 392.3 482.1 475.0 407.4 330.5 513.3 449.2 515.2 387.7 554.5 455.5 507.3 508.2 545.5 533.5 500.9 424.3 547.8 7.00 0.48 11.38 14.53 10.25 14.91 9.40 10.72 11.24 10.29 14.35 12.70 0.95 8.94 1.23 12.48 5.31 4.55 9.39 4.45 5.08 2.58 2.55 V 1000.00 207.50 257.35 208.55 73.80 91.95 103.45 111.38 399.25 74.34 300.43 451.78 190.59 255.42 273.27 532.57 431.55 215.25 459.04 104.58 88.55 25.88 399.75 P: 50.00 92.18 25.50 98.10 5.35 95.95 88.20 42.30 45.52 59.02 25.25 48.04 27.32 13.12 49.89 15.42 53.42 12.42 98.55 73.59 54.21 57.85 75.40