26. The daily demand for Invigorated PED shoes is estimated to be

where Ax represents the amount of advertising spent on shoes (X), Px is the price of good X, Py is the price of good Y, and M is average income. Suppose good X sells at $25 a pair, good Y sells at $35, the company utilizes 50 units of advertising, and average consumer income is $20,000. Calculate and interpret the own price, cross-price, and income elasticity of demand.

Transcribed Image Text:

Q=100-3P+4P,-.01M+2A,