Your company, which specializes in bovine costumery (BullFeathers), has the following demand function:

Q = a + bP + cM + dR

where Q is the quantity demanded of BullFeathers' most popular bird costume for cows, P is the price of that product, M is consumer income, and R is the price of a related product.The regression results are:

Adjusted R Square

0.8105

Independent Variables

Coefficients

Standard Error

t Stat

P-value

Intercept

9823.57

90.93

108.03

1.37E-42

P

-4.859

2.096

-2.319

0.027

M

0.006

0.002

3.844

0.001

R

5.21

1.167

4.463

0.000

a.Discuss whether you think these regression results will generate good sales estimates for BullFeathers.

Now assume that the income is $55,613, the price of the related good is $237, and BullFeathers chooses to set the price of its product at $252.

b.What is the estimated number of units sold given the data above? (round to nearest unit; no decimals)

c.What are the values for the own-price, income, and cross-price elasticities?

d.If P increases by 5%, what would happen (in percentage terms) to quantity demanded?

e.If M increases by 3%, what would happen (in percentage terms) to quantity demanded?

f.If R decreases by 4%, what would happen (in percentage terms) to quantity demanded?