The following demand function has been estimated for Fantasy pinball machines:
QD = 3,500 ? 40P + 17.5Px + 670U + .0090A + 6,500N where monthly rental price of Fantasy pinball machines
monthly rental price of Old Chicago pinball machines (their largest competitor)
current unemployment rate in the 10 largest metropolitan areas
advertising expenditures for Fantasy pinball machines
fraction of the U.S. popul ation between ages 10 and 30 (a) What is the point price elasticity of demand for antasy pinball machines when , and
(b) What is the point cross elasticity of demand with respect to Old Chicago pinball machines for the values of the independent variables given in part (a)?
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