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    Demand function

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    Given the following demand function:
    Q = 2.0 P-1.33 Y2.0 A0.50

    Where
    Q = quantity demanded (thousands of units)
    P = price ($/unit)
    Y = disposable income per capita ($ thousand)
    A = advertising expenditures ($ thousand)

    Determine the following when P = $2/unit, Y = $8 (i.e., $8000), and A = $25 (i.e., $25,000)
    (a) Price elasticity of demand

    (b) The approximate percentage increase in demand if disposable income percentage increases by 3%.

    (c) The approximate percentage increase in demand if advertising expenditures are increased by 5 percent.

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    https://brainmass.com/economics/demand-supply/demand-function-322831

    Solution Preview

    I will assume that your demand function looks like this (if not contact me)

    Q = 2(P^1.33)(Y^2)(A^0.5)

    first we plug in Y = 8 and A = 25

    Q = 640(P^1.33)

    dQ/dP = ...

    $2.19