Given the Following Demand Function:
Q = 2 Determine the Following When P = $2/unit,Y = $8 (A)

Essay

Given the following demand function:
Q = 2.0 P?^1.33 Y^2.0 A^.50
$$\begin{array} { l l } \text { where } & Q = \text { quantity demanded (thousands of units) } \\& P = \text { price ( } \$ / u n i t ) \\& Y = \text { disposable income per capita (\$ thousands) } \\& A = \text { advertising expenditures ( } \$ \text { thousands) }\end{array}$$ determine the following when P = $2/unit,Y = $8 (a) Frice el asticity 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.