ABC Corporation has used regression analysis to perform price elasticity analysis.

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Question 1: ABC Corporation has used regression analysis to perform price elasticity analysis. In doing so management regressed the quantity demanded (y variable) against price (x variable) with the following results: Multiple R .86798  Adjusted R squared .72458,  Standard error 542.33 Intercept 56400.50 Price coefficient –4598.20 What percentage of the variation in quantity demanded is explained by price? A) 86.798% B) 72.45% C) 56.4% D) 54.23% Question 2: ABC Corporation has used regression analysis to perform price elasticity analysis. In doing so management regressed the quantity demanded (y variable) against price (x variable) with the following results: Multiple R .86798 Adjusted R squared .72458,  Standard error 542.33 Intercept 56400.50 Price coefficient –4598.20 Calculate the predicted quantity demanded if price is set at $ 7.00.  A) 31,234 B) 88,588 C) 24,213 D) 18,454