Question: | | .5 (a) Use your computer software for two-stage least squares or insffumental variables estimation, and the 30 observations in the file truffies.dat to

| | .5

(a) Use your computer software for two-stage least squares or insffumental variables estimation, and the 30 observations in the file truffies.dat to obtain 2SlS estimates of the system in equations ( 1 1. I 1) and ( I 1. 12). Compare your results to those in Table 11.3.

(b) Using the 2SIS estimated equations, compute the price elasticity of supply and demand "at the means." The summary statistics for the data are given in Table

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