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Suppose that the demand function of a new face cream is described by the demand function: Q(P.A) = P'UZAW. where Q represents the quantity demanded,

Suppose that the demand function of a new face cream is described by the demand function: Q(P.A) = P'UZAW. where Q represents the quantity demanded, P represents price, and A represents advertising expenditures. (i) Compute the price elasticity of demand (an) and the advertising elasticity of demand (651). (Please show your detailed calculations). (ii) What do you predict the advertising-to-sales ratio would be in this industry? (Please demonstrate your method) (iii) Does it depend on how costly it is to advertise for this product? Why? Why not? (Explain carefully)

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