answer question

[12 points, 6 points each small question] Given a data set of historical prices and demand levels (such as the data set below), you need to fit parameters of (1) the constant elasticity model (p) = Dp- (2) the log-linear model o(p) = De-EP. Price Qty $4.51 1637 $4.25 1731 $4.34 1625 $4.31 2119 $4.10 1841 $4.81 1843 $5.19 1 121 $5.42 1487 $4.69 1841 $5.98 1071 $5.08 1220 $4.48 1448 $5.34 1213 $5.57 1323 (a) Describe the regression procedure (how to prepare data, how to do regression, how to compute the parameters) for the two functions. Use words, no need to use Excel. (b) Assume the production cost is c and the right demand model is d(p) = DeP. If you need to find the optimal price that maximizes profit. Present the formulation of the problem (no need to solve it)