Question: Suppose the demand function for a firm's product is given by

\(\ln Q_{x}^{d}=3-0.5 \ln P_{x}-2.5 \ln P_{y}+\ln M+2 \ln A\)

where \(P_{x}=\\) 10$

\(P_{y}=\\) 4$

\(M=\\) 20,000$, and

\(A=\\) 250$

1. Determine the own price elasticity of demand, and state whether demand is elastic, inelastic, or unitary elastic.
2. Determine the cross-price elasticity of demand between good \(X\) and good \(Y\), and state whether these two goods are substitutes or complements.
3. Determine the income elasticity of demand, and state whether good \(X\) is a normal or inferior good.
4. Determine the own advertising elasticity of demand.

Price: $2.99

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