Consider the following:Q_D = 350 - 5P + 5M + 3P_R + 2Adv.Where Q is the quantity demanded (in thousands of boxes) per year, P is price per box, P_R is the price of a rival product, and M is yearly consumers' average income. At present, P = $20, P_R = $10, Adv = $15 (in thousands of dollars), and M = $20 (in thousands of dollars).Use M = $20 and Adv = $15 when using the values of those variables]

a. Calculate the price elasticity of demand for the company's product?What kind of information do you infer from it. If the company decides to increase sales of its product by 10% through a price-change, what should they do to price - Increase? Decrease? By how much?

b. Is the company maximizing its sales revenue by charging $10? If not, what price should it charge to maximize its revenue?

c.What is the income elasticity of demand of the product? Is the product a inferior or normal good? Suppose reports published by the US Bureau of Economic Analysis indicate that consumers' average income will increase by 4%, how would that affect the demand for the product.

e. What is the advertising elasticity of demand? If the corporation wants to increase its sales by 5% by adjusting its ad expenditures to affect the increase, what should it do? Increase or decrease its ad expenditures? By what percentage points?