Income elasticity of demand and advertising elasticity

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Reference no: EM131074814

A firm has estimated the following demand function for its product: Q = 8 – 2P + 0.10I + A Where Q is quantity demanded per month in thousands, P is product price, I is an index of consumer income, and A is advertising expenditures per month in thousands. Assume that P = $10, I = 100, and A = 20. Based on this information, calculate values for: quantity demanded; price elasticity of demand; income elasticity of demand; and advertising elasticity. (Use the point formulas to complete the required elasticity calculations).

Reference no: EM131074814

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