Consider the following demand function for product M:

QM = 150 - 1.5PM + 0.41 + 2.5A + Py QMis demand for M, PM is price of M, I is per capita disposable income, A is advertising expenditure in thousands of dollars, and Py is the price of product Y. (a). How is the coefficient on advertising interpreted? [1 mark] (b). Are M and Y substitutes or complements? Briefly explain [1 mark] (c). Suppose | is = 2000, A = 4000 and Py is 200. Suppose also the supply curve of M is given by QM = 2150 + 4.5PM. What is the equilibrium price and quantity for good M? [1 mark] (d). What is the point price elasticity of demand at the equilibrium price obtained in (c) above? [1 mark]