E2 The demand for your product demands on three factors; the price of your good, the price of a related good, and the average income ofyour customers. Excel estimated the above linear demand for your product.If the price of your good is $125, the price of the related good is $40, and the average income of consumers is $28,000, what is the pointelasticity of demand?O A. 1.20O B. 0.22OC. 2.20O D. 0.12t Regression StatisticsMultiple RR SquareAdjusted R SquareStandard ErrorObservationsInterceptPrice of GoodPrice of Related GoodIncome0.990.980.972.5235Coefficients Standard Error131.92-7.4610.240.3017.761.180.970.10t Stat7.43- 6.3410.603.00P-value0.000.000.000.01Lower 95%97.11- 9.868.270.10Upper 95%166.73- 5.0612.210.50

Given information: Demand is a function of three factors, i.e., price of good, price of a related…

The demand for your product demands on three factors; the price of your good, the price of a related good, and the average income your customers. Excel estimated the above linear demand for your product. If the price of your good is $125, the price of the related good is $40, and the average income of consumers is $28,000, what is the elasticity of demand? O A. 1.20 OB. 0.22 C. 2.20 012 W

The demand for your product demands on three factors; the price of your good, the price of a related good, and the average income your customers. Excel estimated the above linear demand for your product. If the price of your good is $125, the price of the related good is $40, and the average income of consumers is $28,000, what is the elasticity of demand? O A. 1.20 OB. 0.22 C. 2.20 012 W

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4A: Problems In Applying The Linear Regression Model

Section: Chapter Questions

Problem 5E

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