Elasticity Questions ln Qx = 7 - 1.5 ln PX 2 ln PY - 0.5

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Question description

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

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.

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