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The following demand function has been estimated for Fantasy Pinball machines: Qd = 3500- 40P + 17.5Px + 670U + 0.0090A + 6500N
Where P = monthly rental price of fantasy pinball machines, Px = Monthly rental price of old Chicago pinball machines. U= Current unemployment rate in the 10 largest area A = Advertising expenditure for Fantasy pinball machines, N = Fraction of the US. Population between ages 10 and 30
(i) The point Price elasticity of demand for Fantasy pinball machines when P =$150, Px=$100, U = .12, A =$200,000 and N =.35
(ii) The point cross elasticity of demand with respect to Old Chicao pinball machines for hte values of the independent variables given in (i)?
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