4. Using Log-log model to estimate the demand function

Data: sales with interactions.xsls

Model: log(sales) = a + b * log(price) + error

Explain the results in term of how price affects sales.

Market ID	Sales	Price	Advertising
1	367	2.2	Yes
2	165	2.7	No
3	366	2.4	Yes
4	148	2.9	No
5	152	2.8	No
6	198	2.2	No
7	390	2	Yes
8	367	2.3	Yes
9	210	2.1	No
10	353	2.7	Yes
11	151	2.8	No
12	348	2.6	Yes
13	168	2.6	No
14	147	2.9	No
15	351	2.6	Yes