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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

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

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