Calculate and interpret the own price and cross price

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Reference no: EM13188373

The daily demand for Invigorated PED shoes is estimated to be where Ax represents the amount of advertising spent on shoes (X), Px is the price of good X, Py is the price of good Y, and M is average income. Suppose good X sells at $25 a pair, good Y sells at $35, the company utilises 50 units of advertising, and average income is $20,000. Calculate and interpret the own price, cross price, and income elasticity of demand.

Reference no: EM13188373

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