The Following Demand Function Has Been Estimated for Fantasy Pinball

Essay

The following demand function has been estimated for Fantasy pinball machines: Q_D = 3,500 - 40P + 17.5P_x + 670U + .0090A + 6,500N where
P = monthly rental price of Fantasy pinball machines
P_x = monthly rental price of Old Chicago pinball machines (their largest competitor)
U = current unemployment rate in the 10 largest metropolitan areas
A = advertising expenditures for Fantasy pinball machines
N = fraction of the U.S. population between ages 10 and 30
(a)What is the point price elasticity of demand for Fantasy pinball machines when P = $150, P_x = $100, U = .12, A = $200,000 and N = .35?
(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)?