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The demand for good x is Qx = 10,000 - 4Px + 5Py + 2M + A, where Px is the price of x, Py is the price of good y, M is income and A is the amount of advertising spent on x. Suppose the present price of good x is $50, Py = $100, M = $25,000, and A = $1,000. The price elasticity of demand for good x is approximately:
a. -0.003.
b. -0.045.
c. -0.22.
d. -3.00.
e. None of the above.
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