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A firm has estimated the following demand function for its product: Q = 8 - 2P + 0.101I + A where Q is quantity demanded per month in thousands, P is the product price, I is an index of consumer income, and A is advertising expenditures per month in thousands. Assume that P = $10, I = 120, and A = 10. Based on this information, calculate values for quantity demanded, price elasticity of demand, income elasticity of demand, and advertising elasticity. (Use the point formulas to complete the required elasticity calculations).

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91407780

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