The ABC marketing consulting firm found that a particular brand of musical device has the following demand function:

Q_md^d = 10,000 - 200P + 0.03Pop + 0.6M + 0.2A

where Q_md^d = quantity of musical devices demanded, P = own-price of a musical device, Pop = population, M = disposable household income, and A = own-advertising expenditure. Assume that P = $300, Pop = 1,000,000, M = $30,000, and A = $15,000.

Answer the following questions and please scan or take a photo of your handwritten work showing your steps and email it to J..z@iup.edu. (Note: the image file MUST be a standardized .jpeg, .docx, or .pdf file. For those of you using Apple software, you need to take the steps to convert any .heic or .pages files to one of these standardized specified types. I will NOT do the conversion for you, but will instead enter a zero as your score on this question!)

a. Calculate the own-advertising elasticity of demand. (4 points)

b. Obtain the demand function. (2 points)

c. Suppose that the supply function for musical devices is Q_md^s = 21,000 + 300Pand calculate the equilibrium price and equilibrium quantity. (4 points)