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Given the Following Demand Function:
Q = 2 Determine the Following When P = $2/unit,Y = $8 (A)

Question 25

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Given the following demand function:
Q = 2.0 P?1.33 Y2.0 A.50
 where Q= quantity demanded (thousands of units) P= price ( $/unit)Y= disposable income per capita ($ thousands) A= advertising expenditures ( $ thousands) \begin{array} { l l } \text { where } & Q = \text { quantity demanded (thousands of units) } \\& P = \text { price ( } \$ / u n i t ) \\& Y = \text { disposable income per capita (\$ thousands) } \\& A = \text { advertising expenditures ( } \$ \text { thousands) }\end{array} determine the following when P = $2/unit,Y = $8 (a) Frice el asticity of demand
(b) The approximate percentage increase in demand if disposable income percentage increases by 3%3 \% .
(c) The approximate percentage increase in demand if advertising expenditures are increased by 5 percent.

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