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Determine the own price elasticity of demand

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Reference no: EM132631399

Suppose the demand function for a firm's product is given bylnQxdwherePx = $15Py= $6M= $40,000 andA = $350
= 7 - 1.5lnPx + 2lnPy - 0.5ln M + lnA

a. Determine the own price elasticity of demand, and state whether demand is elastic, inelastic or unitary elatics.

b. Determine the cross price elasticity of demand between good x and good Y and state whether these 2 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: EM132631399

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