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Suppose Pillsbury company estimates the following demand equation for its Quiche using the data from stores for March 2024: Qx = – 5200 – 21 Px + 20

June 3, 2024

Suppose Pillsbury company estimates the following demand equation for its Quiche using the data from stores for March 2024:

Qx = – 5200 – 21 Px + 20 Py + 0.52 Inc + 0.80 A – 2.25M ; R2 = 0.46

(2.002) (8.5) (9.5) (1.4) (0.59) (1.21)

(Standard errors in parentheses)

Assume the following values for the independent variables:

Qx = Quantity of Pillsbury Quiche sold per month

Px (in cents) = 400

Py (in cents) = Price of Sara Lee Quiche Crusts = 500

Y (in dollars) = Per-capita monthly income of the trade area in which the store is located = $30,000

A (in dollars) = Monthly advertising expenditure = 2000

M = Total microwave ovens where the store is located = 2500

Economics

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Suppose Pillsbury company estimates the following demand equation for its Quiche using the data from stores for March 2024: Qx = – 5200 – 21 Px + 20

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