2. (15%) A travel company has hired a management consulting company to analyze demand in 26regional markets for one of its major products: a guided tour to a particular country. The equationfor the quantity demanded is Q = 1500 - 4p + 5A + 10I + 3Px Where

Q = amount of the product demanded

P = Price of the product in dollars

A = advertising expenditure in dollars I = Income in dollars

Px = price of other travel products that are provided by a competing travel company.

a. Determine the simplified demand function for this product using the following data. (Provideprocedure)

P = $400, A = $20,000, I = $15,000, Px = $500

b. Suppose people's income drops to $10,000. How much would this firm have to increase itsadvertising in order to counteract the drop in income? (Provide procedure)