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The following estimates have been obtained for the market demand for cereal In Q= 9.01- 0.68 In P+0.75In A-1.3M, 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.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91274744

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