Essay
Suppose the demand for sunscreen (X)has been estimated to be ln Qx = 5 - 1.7 ln Px + 3 ln S - 3 ln Ay,where S denotes the average hours of sunshine per day and Ay represents the level of advertising for good Y.
a.What would be the impact on demand of a 5 percent increase in the daily amount of sunshine?
b.What would be the impact of a 10 percent reduction in the amount of advertising toward good Y?
c.What might be good Y in this example?
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