Chapter 4 Question 7.
An estimate of the demand
 
function for household furniture produced the following results:
A. Determine the point price and
 
income elasticities for household furniture. 
B. What interpretation would you give to the exponent for R? Why do you suppose R was included in the equation as a variable?
 
C. If you were a supplier to the furniture manufacturer, would you have
 
preferred to see the analysis performed in physical sales units rather than dollars of revenue?
 
How would this change/ alter the interpretation of the price coefficient, presently estimated as −0.48?