The demand for Wanderlust Travel Services (X)is estimated to be Q_x = 22,000 - 2.5P_x + 4P_y - 1M + 1.5A_x,where A_x represents the amount of advertising spent on X and the other variables have their usual interpretations.Suppose the price of good X is $450,good Y sells for $40,the company utilizes 3,000 units of advertising,and consumer income is $20,000.
a.Calculate the own price elasticity of demand at these values of prices,income,and advertising.
b.Is demand elastic,inelastic,or unitary elastic?
c.How will your answers to parts a and b change if the price of Y increases to $50?

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The Answer of The demand for Wanderlust Travel Services (X)is estimated to be Q_x = 22,000 - 2.5P_x + 4P_y - 1M + 1.5A_x,where A_x represents the amount of advertising spent on X and the other variables have their usual interpretations.Suppose the price of good X is $450,good Y sells for $40,the company utilizes 3,000 units of advertising,and consumer income is $20,000. a.Calculate the own price elasticity of demand at these values of prices,income,and advertising. b.Is demand elastic,inelastic,or unitary elastic? c.How will your answers to parts a and b change if the price of Y increases to $50?

The Demand for Wanderlust Travel Services (X)is Estimated to Be