Determine the own advertising elasticity of demand

Reference no: EM13187598

Suppose the demand function for a firm's product is given by
In Qdx=3-0.5 In Px-2.5 In Py In M 2 In A
Where Px= $10, Py= $4, M= $20,000, A= $250
A. Determine the own price elasticity of demand, and state whether demand is elastic, inelastic, or unitary elastic
B. Determine the cross-price elasticity of demand between good X and good Y, and state whether these two goods are substitutes or complements.
C. Determine the income elasticity of demand, and state whether good X is a normal or inferior good
D. Determine the own advertising elasticity of demand

Reference no: EM13187598

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