1. After learning the basic estimation techniques in CH 4, which of the following regressionmodels w

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1. After learning the basic estimation techniques in CH 4, which of the following regressionmodels will you choose to explore how population and income determine the demand on pizzaand estimate the “constant†income elasticity of demand on pizza? Please brief explain yourchoice.Simple linear modelMultiple linear modelQuadratic modelLog-linear model2. What effect, if any, does each of the following events have on the price elasticity of demandfor corporate-owned jets?a. The cost of manufacturing corporate jets rises.b. Reduced corporate earnings lead to cuts in travel budgets and increase the shareof expenditures on corporate jet travel.3. Since the movie, Avatar, 3-D movies have been popular and charged at a higher price,compared with the traditional 2-D movies. Please analyze the impact of 3-D movies ona. The price elasticity of demand on 2-D moviesb. The total revenue of movie theater box officesPlease answer all of the three questions by one paragraph for each sub-question.

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