Your company, which specializes in running shoes for men who are growing increasingly follicly-challenged (BalderDash), has the following demand function:

Q = a + bP + cM + dR

where Q is the quantity demanded of BalderDash's most popular shoes, 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: 0.8635

Independent Variables Coefficients Standard Error t Stat P-value

Intercept 14190.66 1145.32 12.39 9.39E-14

P -59.165 17.765 -3.330 0.002

M 0.0668 0.011 5.811 0.000

R 29.8 9.525 3.128 0.004

1. Discuss whether you think these regression results will generate good sales estimates for BalderDash.

Now assume that the income is $66,500, the price of the related good is $32.50, and BalderDash chooses to set the price of its product at $27.75.

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 6%, what would happen (in percentage terms) to quantity demanded?

e. If M increases by 2%, what would happen (in percentage terms) to quantity demanded?

f. If R decreases by 3%, what would happen (in percentage terms) to quantity demanded?

Please explain with shown work, thank you.