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Q2. (X points total) Through extensive market research, Stewart's Root Beer Company has determined that demand for its old fashioned root beer in any given

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Q2. (X points total) Through extensive market research, Stewart's Root Beer Company has determined that demand for its old fashioned root beer in any given month is determined by their price, the price charged by their primary competitor (A&W Root Beer), their advertising expenditures that month and the weather (people drink more root beer when it's hot). Specifically, Stewart's has used scanner data from local grocery stores to estimate the following demand curve: q = 870 - 300 PS + 50 PAW + 10 A + 3T where q = quantity of Stewart's root beer sold each month (thousands of liters), PS = price of Stewart's root beer per liter, PAW = price of A&W root beer per liter, A = monthly advertising expenditures for Stewart's Root Beer Company (thousands of dollars) and T = temperature (in degrees Fahrenheit)

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