Demand specification to estimate demand function

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Reference no: EM133636478

Question

An econometrics expert at your firm used a linear demand specification to estimate the demand function for your firm's product and these were the results: Coefficient Standard Error t-stat p-value Intercept 58.87 15.33 3.84 0.00 Price of Product -1.64 0.85 -1.93 0.06 Income 1.11 0.24 4.64 0.00 a. Write an equation that summarizes the demand for your firm's product. b. Which regression coefficients are significant at the 5 percent level? c. If the price is $10, what is the income elasticity for this product for an income level of $35?

Reference no: EM133636478

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