QD = 20,000 - 10P + 1500A + 5PX + 10I

QD = 20,000 - 10P + 1500A + 5PX + 10I
(5,234) (2.29) (525) (1.75) (1.5)
R2 = 0.85 n = 120 F = 35.25
Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables:
Q = Quantity demanded
P (in cents) = Price of the product = 8,000
PX (in cents) = Price of leading competitor’s product = 9,000
I (in dollars) = Per capita income of the standard metropolitan statistical area
(SMSA) in which the supermarkets are located = 5,000
A (in dollars) = Monthly advertising expenditures = 64

Note: The following is a regression equation. Standard errors are in parentheses for the demand for widgets.