Given the Following Demand Function:
Q = 2 Determine the Following When P = $2/unit,Y = $8 (A)

question 7

Essay

Given the following demand function:
Q = 2.0 P?^1.33 Y^2.0 A^.50
$$\begin{array} { l l } \text { where } & Q = \text { quantity demanded (thousands of units) } \\& P = \text { price ( } \$ / u n i t ) \\& Y = \text { disposable income per capita (\$ thousands) } \\& A = \text { advertising expenditures ( } \$ \text { thousands) }\end{array}$$ determine the following when P = $2/unit,Y = $8 (a) Frice el asticity of demand
(b) The approximate percentage increase in demand if disposable income percentage increases by $3 \%$ .
(c) The approximate percentage increase in demand if advertising expenditures are increased by 5 percent.

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Definitions:

Stock Number

A unique identifier assigned to a particular stock of goods or securities for identification and inventory management.

Internal Control

Measures and tactics adopted by an organization to safeguard the reliability of its financial and accounting data, foster responsibility, and avert deceit.

Materials Requisition Slip

A document used internally in a company to request materials or goods from the inventory or warehouse, specifying quantities and details needed for production.

Authorization

The formal or official approval, often required before an action or transaction can occur.