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Calculate the own price elasticity of demand

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Reference no: EM131951999

The demand for Wanderlust Travel Services is estimated to be:

Qdx = 22,000 - 2.5Px + 4Py - 1M - 1.5Ax

Ax represents the amount of advertising spent on X and M represents consumer income. The other variables have their usual interpretations. Suppose the price of good X is $450, Good Y sells for $40, the company utilizes 3,000 units of advertising and consumer income is $20,000.

Calculate the own price elasticity of demand at this values of prices, income, and advertising.

Reference no: EM131951999

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