Question: Initial values are: PM = $20000 Pc =$1.00 I= $15000 A = $10000 This function is: QT = 200 -.01PT +.005PM-10Pc +.01I +.003A 5.(a). Calculate

Initial values are: PM = $20000 Pc =$1.00 I= $15000 A = $10000 This function is: QT = 200 -.01PT +.005PM-10Pc +.01I +.003A 5.(a). Calculate the point advertising elasticity of demand for advertising expenditures (A) = $10000 also with PT = $10000 (which should make QT= 370). Other variables and their values are given at the top, before question #1. The formula is: aQT A EA aA QT (b). Does this elasticity indicate that demand for Toyotas is very responsive to changes in advertising expenditures (thus suggesting that advertising is a very important way to increase sales)? Explain why or why not

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