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A firm's individual demand for good x satisfies, lnQ X =1-7.2lnP X +(1.2)lnP Y +(0.83)lnM+(1.3)lnA X; Q_{X} is quantity of X , P_{X} is the
A firm's individual demand for good x satisfies, lnQ X =1-7.2lnP X +(1.2)lnP Y +(0.83)lnM+(1.3)lnA X; Q_{X} is quantity of X , P_{X} is the price of X , P_{Y} is the price of Y, a related good, A is advertising and M is income level. If the current advertising budget is A=\$1493 . What should their advertising be to increase quantity demanded by 19%? $ A new ad campaign for Y has increased P_{Y} by 9% (\% Delta P Y =9\%) . By what percent will this change quantity demanded of X? (It could be positive or negative .) 10.8 % A recession is expected to drive income down by 5% next year (\% Delta M=-5\%) . By what percent will this change quantity demanded ? (It could be positive or negative .) -4.1:\%
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