A munufacturer of computer workstation gathered average monthly sales figures from its 56 branch
offices and dealerships across the country and estimated the following demand for its product:
Q=+15,000 - 2.80P +150A +0.3Ppc +0.35Pm +0.2Pc
(5,234) (1.29) (175) (0.12) (0.17) (0.13)
R2 = 0.68
The variables and their assumed values are
Calculate the elasticities for each of the variables. On this basic, discuss the relative impact that each variable has on the demand. What implications do these results have for the firm's marketing and pricing policies?