You are given the prices and quantities of corn and asked to calculate the price elasticity of demand. You find this data in problem 2 on “Homework 5 data". a.

[2 Points] By including all the observations in the regression, what assumption are you implicitly making about the supply and demand curves throughout the collection period? b. [15 Points] Propose a model to estimate the price elasticity of demand with OLS. C. [5 Points] From a statistical standpoint, interpret the coefficient value associated with the independent variable. (B1) d. [2 Points] Based on your estimates, is the demand for corn considered to be elastic, inelastic, or unitary elastic? e. [3 Points] Is it feasible (with significance level of 5%), that the demand for corn is unitary elastic?