Suppose the demand function for a firm's product is given by lnQXd= 7 - 1.5 lnPX+ 2 lnPY- 0.5 lnM+ lnAwhere:

Px= $15

Py= $6

M= $40,000, and

A= $350

a. Determine the own price elasticity of demand, and state whether demand is elastic, inelastic, or unitary elastic.

Own price elasticity:

Demand is:

(Click to select)elasticunitary elasticinelastic

b. Determine the cross-price elasticity of demand between goodXand goodY, and state whether these two goods are substitutes or complements.

Cross-price elasticity:

These two goods are:

(Click to select)complementssubstitutes

c. Determine the income elasticity of demand, and state whether goodXis a normal or inferior good.

Income elasticity:

Good X is:

(Click to select)inferiornormal

d. Determine the own advertising elasticity of demand.