2 - Question 13 (1 point)

A firm has estimated the following demand function for its product: Q = 58 - 2P + 0.10I + 15A where Q is Quantity Demanded per month in thousands, P is product price, I is an index of consumer income, and A is advertising expenditures per month in thousands. Assume that P = $10, I = 120, and A = 10. If so, the income elasticity of demand is

Question 13 options:

a)

.86

b)

.18

c)

.36

d)

.06