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(Solved) : 4 Using Log Log Model Estimate Demand Function Data Sales Interactionsxsls Model Log Sales Q44082210 . . .

4. Using Log-log model to estimate the demand function

• Data: “sales with interactions.xsls”

• Model: log(sales) = a + b * log(price) + error

• Explain the results in term of how price affects sales.

Market IDSalesPriceAdvertising13672.2Yes21652.7No33662.4Yes41482.9No51522.8No61982.2No73902Yes83672.3Yes92102.1No103532.7Yes111512.8No123482.6Yes131682.6No141472.9No153512.6Yes

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