# Suppose the demand function for a firm’s product is given by ln QXd = 7 - 1.5 ln PX + 2 ln PY - 0.5

**Question description**

Suppose the demand function for a firm’s product is given by ln *Q _{X}^{d}* = 7 - 1.5 ln

*P*+ 2 ln

_{X}*P*- 0.5 ln

_{Y}*M*+ ln

*A*where:

*P*= $15

_{x}*P*= $6

_{y}*M*= $40,000, and

*A*= $350

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

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