Question: Solve clearly Question #1. Assume the following demand function for a good it: qu= 15G+ZA:- 3Pz+ .DIM +4Py Where Qltd is the quantity demanded of

Solve clearly Question #1. Assume the following demand function for a

Solve clearly

Question #1. Assume the following demand function for a good it: qu= 15G+ZA:- 3Pz+ .DIM +4Py Where Qltd is the quantity demanded of K, A: is advertising expenditure, Px Price of K, M is the average income, and P1' is the price of other good '1'. Suppose P: is 25 per unit, P1. is 35 per unit, the company utilizes 50 units of advertising, and average consumer income is 20,0130. Calculate and interpret: A. The price elasticitvr of demand for it. If P; reduces lav was lower than before. what will be the total sale of it? B. Cross-price elasticitv of demand. Is the good v substitute or complement? C. Income elasticityr of demand. Is it normal or inferior goods. D. What is the quantitv sold if the Good I is sold at the same price of Y? Hint.- Note that elasticity can be expressed as: E... = E s E = at, E, where to Is the coefficient of Price. Use the same for others

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