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You are the manager of a firm that sells a leading brand of alkaline batteries in different regions of your country. The data on the
You are the manager of a firm that sells a leading brand of alkaline batteries in different regions of your country. The data on the demand for your product is provided in the attached Excel sheet for 49 regions. Based on past studies, you have a reason to believe that the demand function is of the form: Q = AP"Me where Q= quantity (in thousands of packages of 10 each), A= constant term (a demand shifter other than income), P = Price (in dollars per package of 10), M = income per customer (in thousands of dollars). Use the given data to estimate the demand function. (Attach your regression output to your report). a. What are the income and price elasticities of demand for alkaline batteries. How do these elasticities vary with price and income, respectively
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