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The following is a regression equation. Standard errors are in parentheses for the demand for widgets.QD = -2,000 – 100P + 15A + 25PX + 10I (5,234) (2.29) (525) (1.75) (1.5) R2 = 0.85 n = 120 F = 35.25Yoursupervisor has asked you to compute the elasticities for eachindependent variable. Assume the following values for the independentvariables:Q = Quantity demanded of 3-pack units P (in cents) = Price of the product = 200 cents per 3-pack unit PX (in cents) = Price of leading competitor’s product = 300 cents per 3-pack unit I (in dollars) = Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarkets are located = $5,000 A (in dollars) = Monthly advertising expenditures = $640Compute the elasticities for each independent variable. Note: Write down all of your calculations.Determinethe implications for each of the computed elasticities for the businessin terms of short-term and long-term pricing strategies. Provide arationale in which you cite your results.Recommendwhether you believe that this firm should or should not cut its priceto increase its market share. Provide support for your recommendation.Assumethat all the factors affecting demand in this model remain the same,but that the price has changed. Further assume that the price changesare 100, 200, 300, 400, 500, 600 cents.Plot the demand curve for the firm.Plotthe corresponding supply curve on the same graph using the following MC/ supply function Q = -7909.89 + 79.1P with the same prices.Determine the equilibrium price and quantity.Outlinethe significant factors that could cause changes in supply and demandfor the low-calorie, frozen microwavable food. Determine the primarymanner in which both the short-term and the long-term changes in marketconditions could impact the demand for, and the supply, of the product.Indicate the crucial factors that could cause rightward shifts and leftward shifts of the demand and supply curves for the low-calorie, frozen microwavable food.