Question: The following estimates have been obtained for the market demand for cereal: lnQ = 9.01-0.68lnP + 0.75lnA -1.3lnM , where Q is the quantity of cereal, P is the price of cereal, A is the level of advertising, and M is income. Based on this information, determine the effect on the consumption of cereal of
a. A 5 percent reduction in the price of cereal
b. A 4 percent increase in income
c. A 20 percent reduction in cereal advertising