Question: Need help for this question Question 2 (5 points) Given the following demand function: Q = 2.0 p-1.33 y2.0 A.50 where Q = quantity demanded
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Question 2 (5 points) Given the following demand function: Q = 2.0 p-1.33 y2.0 A.50 where Q = quantity demanded (thousands of units) P = price ($/unit), note that the exponent in P has a minus sign (-1.33) Y = disposable income per capita ($ thousands) A = advertising expenditures ($ thousands) determine the following when P = $2/unit, Y = 8, and A = 25. Please make sure to show us all the steps of your calculations and that you interpret the results found in each question. a) Price elasticity 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
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