You have been hired as a consultant to estimate the demand for various brands of coffee in the market. You are provided with annual price data for two years by U.S. state and the quantities sold. You want to estimate a demand function for coffee using this data. What problems do you think you will encounter if you estimated the demand equation by OLS?

When the price of candy bars decreased from $0.55 to $0.45, the quantity demanded changed from 19,000 per day to 21,000 per day. In this price range, the price-elasticity coefficient (based on the midpoint formula) for candy bars is Multiple Choice 1. 0.2 0.5 Mc Graw Hill P Type here to search 10:31 AM 84°F Sunny 10/2/2021 2.

Do not use Ai. Answer in all options.

Hans is a butcher in Washington. The following contains data on prices and weekly sales at his shop Good Beef Chicken Price 9.00/lbs $4.00/lbs Quantity 400 lbs 300 lbs ShS He estimates that the own price elasticity for beef is 2 and for chicken is .75. He also estimates that the cross price elasticity for chicken is .60. His current revenue from the sale of these two goods is making a total of $4800/week. In the spirit of the return to good times and outdoor grilling, he has decided to lower the price of beef for the summer, from $9.00 to $8.55. Overall, Hans can expect to take in dollars in revenue, given the information in this problem? (Revenue = Price x sales). Record your answer without a dollar sign and without a comma. Helpful Hint: In this problem, we are not changing the price of chicken.