For the Cigarette Data given in Table 3.2. Run the following regressions:

(a) Real per capita consumption of cigarettes on real price and real per capita income. (All variables are in log form, and all regressions in this problem include a constant).

(b) Real per capita consumption of cigarettes on real price.

(c) Real per capita income on real price.

(d) Real per capita consumption on the residuals of part (c).

(e) Residuals from part

(b) on the residuals in part (c).

(f) Compare the regression slope estimates in parts

(d) and

(e) with the regression coefficient estimate of the real income coefficient in part (a), what do you conclude?