Question 1 0.5 pts VP Corporation-the parent company owning Lee Jeans- is considering whether to add to their portfolio a new upscale brand of Jeanswear, '7 for All Mankind". They want to estimate the demand for Lee Jeans to answer a question whether their jeans are purchased alone or whether the typical customer buying Lee also buys a dress pair of designer jeans such as Guess. Alternatively, would 7 for All Mankind jeans cannibalize the sales of Lee jeans? The company collected sales (QLEE). price of Lee (FLEE), price of Levi (PLEVI). price of Guess (Pourss), income of customers (INC), and Population (Pop) on the target market for 48 quarters; the current values of variables are. Given the following values of the variables or determinants in the equation, calculate the price elasticity of demand. Estimated demand equation: Q subscript L E E and subscript equals 133 comma 500 minus 1250 cross times P subscript L E E end subscript plus 450 cross times P subscript LE V I end subscript minus 571.43 cross times P subscript G U E S S and subscript minus 1.25 cross times I N C plus 0.5 cross times P O P Values of the variables: QLEE-50,000 (demand for QLEE) PLEE=$18 (price of LEE) OLEE=50,000 (demand for QLEE) PLEW=$20 (price of Levi) PGUESS=$35 (price of Guess) Income (INC)=$80,000 (income) Local Target Market Population (POP)= 100,000 Question 2 Given the estimated demand equation and the current values of the determinants, calculate cross-price elasticity of demand for LEE in terms of LEVI. Question 3 Based on the estimate of cross price elasticity of demand for LEE in terms of price of LEVI, are Lee and Levi substitutes or complements? or Something else? O Substitutes O Complements O Something else Question 4 Given the estimated demand equation and the current values of the determinants, calculate the cross price elasticity demand for LEE in terms of price of GUESS. Question 5 Based on the estimate of cross price elasticity of demand for LEE in terms of price of GUESS. are Lee and GUESS substitutes or complements? or Something else? Substitutes O Complements O Something elseQuestion 6 Given the estimated demand equation the following current values of the variables, income elasticity demand for LEE is equal to Question 7 Based on estimate of income elasticity, is Lee jeans a normal or an inferior goods? O Normal good. O Inferior good O Neutral good. Question 8 Based on the estimate of cross-price elasticity of demand for LEE, which two products should be sold together in stores? LEE and LEVI or LEE and GUESS? Explain your answer, (0.5 points Question 9 Based on the estimate of income elasticity of demand, what type of store should sell LEE jeans? Stores in low income areas or stores in high income areas? Explain your answer. ") sold in stores in high-middle income areas. sold in stores in high income areas. O sold in stores In low income arcas