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Managerial economics course question
Someone help me pleaseeeeee im hopelesssss
The demand for x is
Qx=44000-5Px+8Py-2M+3Ax where Ax represents the amount of advertisng spent on x and other have their usual interpretations.Suppose the price of good X is $900, good y sells for $80,the co utilizes 6000 units of advertising and consumers income is 40000
a)calculate the own price elasticity of demand at these values of prices,income and advertising?
b)is demand elastic?
c)what happens if the prices of y decrease to 40 ?
Someone help me pleaseeeeee im hopelesssss
The demand for x is
Qx=44000-5Px+8Py-2M+3Ax where Ax represents the amount of advertisng spent on x and other have their usual interpretations.Suppose the price of good X is $900, good y sells for $80,the co utilizes 6000 units of advertising and consumers income is 40000
a)calculate the own price elasticity of demand at these values of prices,income and advertising?
b)is demand elastic?
c)what happens if the prices of y decrease to 40 ?