: Estimation of demandA. Market Characteristics and Demand Estimation The price and quantity data provided in the dataset is a reasonable approximation of the demand estimate for the product. However, we assume that other dependent variables such as advertising and substitutes do not affect the demand timing. The market structure is monopolistic in which many competing producers/retailers sell products/services differentiated from each other. In monopolistic competition, firms behave like monopolies in the short term. Some of the characteristics of the retail industry in which Wal-Mart operates are as follows.1. A monopolistic market has many producers and consumers, but no single leader with influence over market prices2. Consumers choose producers based on branding and advertising.3. Producers continue to influence market prices with relatively fewer barriers to entry and exit.B. Linear or Log-Linear Demand Curve The linear demand curve assumes that changes in price, prices of complementary/additional goods, income, advertising and associated factors will result in a constant marginal effect. We assume a linear demand curve in the given data range. Since we assume that the effect of unit change in the independent variable will result in a constant effect on demand in the linear analysis of cure demand. Therefore, the change in elasticity is the basic assumption in a linear demand curve. In the log-linear demand curve, we assume that there will be a variable change in demand due to the unit change in the independent variable (price), but the elasticity of demand is assumed to be constant. Constant elasticity is the basic assumption under a log-linear demand curve.Part 2: Regression analysisSummary table: Linear demand curveRegression statistic...... middle of article.. ....s and Statistics, 59 (3), 355 -359.Christ, Carl F. (1985). First advances in estimating quantitative economic relationships in America. American Economic Review, 75 (6), 39-52. Eales, James S. and Unnevehr, Laurian J. (1988). Demand for beef and chicken products: separability and structural change. American Journal of Agricultural Economics, 71 (3), 521-532. Farnham, Paul G. (2005). Economics for managers. Upper Saddle River. NJ: Pearson Education, Inc. Ferger, Wirth F. (1932). Static and dynamic demand curves. Quarterly Journal of Economics, 47 (1), 36-62. Hirschey, Mark. (2006). Managerial economics. Stamford CT: Thomson Higher Ed.McGuigan, James R., Moyer, R. Charles and Harris, Frederick H.deB. (2005). Managerial economics: applications, strategies and tactics with economic applications. StamfordCT: Thomson Higher Education.