Question: A firm has estimated the following demand function for its product: Q = 20-4P+.50I+3A where Q is quantity demanded per month in thousands, P is

A firm has estimated the following demand function for its product:

Q = 20-4P+.50I+3A 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=100, and A=20.

Based on this information, what is the advertising elasticity:

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