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The following demand function demand function has been estimated for Fantasy pinball machines,
QD = 3,500 - 40P + 17.5Px + 670U + .0090A + 6,500Nwhere P = monthly rental price of Fantasy pinball machinesPx = monthly rental price of Old Chicago pinball machines (their largest competitor)U = current unemployment rate in the 10 largest metropolitan areasA = advertising expenditures for Fantasy pinball machinesN = fraction of the U.S. population between ages 10 and 30
Based on the data listed in above, what is the point cross elasticity of demand for Fantasy pinball machines with respect to Old Chicago pinball machines when P = $150, Px = $100, U = .12, A = $200,000 and N = .35?
a -0.514
b 1.028
c 0.514
d .257
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