Given the Following Demand Function:Q = 2

Essay

Given the following demand function:Q = 2.0 P ^{- 1.33} Y^2.0 A^.50where
Q = quantity demanded (thousands of units)
P = price ($/unit)
Y = disposable income per capita ($ thousands)
A = advertising expenditures ($ thousands)
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.