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Problem 3 Consider a choice set of three brands (B1, B2, B3). These brands are described by their Price attribute. A multinomial model estimated on data about consumer choices results in a price coefficient of -3.1. The probabilities of choice for the three brands and the prices on one observation in the dataset are given below. Brand B1 B2 B3 Price ($) 1.15 0.95 1.2 Choice Probability 0.35 0.4 0.25 Compute the own and cross-price elasticities based on the above information. Interpret what these elasticities mean