Demand Estimation

Demand Estimation Assignment

The following sales data by store was collected by the marketing department by running sales in various cities for six weeks.

Price	Sales
City	Ann Arbor, MI
15	36,400
16	24,200
17	21,800
18	19,100
19	17,600
20	11,300
City	Peoria, IL
Price	Sales
13	19,650
14	10,130
15	9,500
16	8,600
17	6,200
18	3,450
City	Napa, CA
Price	Sales
16	44,100
17	42,700
18	40,600
19	39,200
20	37,600
21	32,500
City	Syracuse, NY
Price	Sales
13	17,150
14	16,400
15	14,200
16	10,680
17	9,520
18	7,320
City	New Orleans/Metairie/Kenner, LA
Price	Sales
13	5,750
14	4,920
15	4,150
16	3,850
17	2,150
18	1,750
City	Riverside/San Bernardino/Ontario, CA
Price	Sales
13	15,410
14	15,100
15	14,240
16	13,100
17	12,500
18	10,100

Find the per capita income for each city and enter the data into a spreadsheet.
Run a regression to estimate the demand curve for the product.
Using the average per capita income, plot the overall demand curve.
Compute the elasticity of demand from a price of 16 to 17 in each city. Comment on any differences.