Question 10 U.5 pts ABC Inc. estimated the following log-demand equation for its breakfast cereal log(Q)= -7.26-1.65log(P)+ 1.07log(M) + 0.15log(4) Where, log is the natural log operator, Q. is the demand for breakfast cereal, P, the price of breakfast cereal, M is the per capita income for the customers, and A is the advertising expenses by the top 4 cereal firms. How much is price elasticity of demand of breakfast cereal? O -7.26 O -1.65 O 1.07 O 0.15 Question 11 0.5 pts Based on the estimated log-demand equation for its breakfast cereal log(Q)= -7.26-1.65 x log(P)+ 1.07 x log(M) + 0.15 x log(A) how much is the income elasticity of demand for breakfast cereal? O -7.26 O -165 O 1.07 O 0.15 Question 12 0.5 pts Based on the estimated income elasticity of demand from the equation log(Q)= -7.26- 1.65 x log(P) + 1.07 x log(M) + 0.15 x log(A), breakfast cereal is " normal and luxury. O normal and necessity. O Inferior. inferior and necessity.Question 13 0.5 pts From the estimated log-demand equation log(Q)= -7.26-1.65 xlog(P) + 1.07 x log(M) + 0.15 xlog(4) how much is the advertising elasticity of demand for breakfast cereal? O -7.26 O -1.65 O 1.07 O 0.15 Question 14 0.5 pts Suppose the goal of ABC Inc. is to increase revenue. Based on the estimated price elasticity of demand for breakfast cereal, should ABC Inc. raise or cut price of breakfast cereal? Explain your answer. O Raise price because ABC's breakfast cereal is price clastic. O Cut price because ABC's breakfast cereal is price elastic. Raise price because ABC's breakfast cereal is price inclastic. O Cut price because ABC's breakfast cereal is price inclastic