Your company, which specializes in running shoes for men's shoes (ShoeShine), has the following demand function:

Q = a + bP + cM + dR

where Q is the quantity demanded of ShoeShine'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 ShoeShine.

Now assume that the income is $66,500, the price of the related good is $32.50, and ShoeShine 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?