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Q. General Cereals is using a regression model to estimate the demand as well as for Twee tie Sweeties, a whistle-shaped, sugar coated breakfast cereal for children. The following (multiplicative exponential) demand as well as function is being used:QD = 6,280P-2.15A1.05N3.70
Where QD = quantity demanded in 10 oz boxesP = cost per box, in dollarsA = advertising expenditures on daytime television in dollarsN = proportion of the population under 12 years olda. Determine the point cost elasticity of demand as well as for Twee tie Sweeties. -2.15b. Determine the advertising elasticity of demand as well as. 1.05c. What interpretation would you give to the exponent of N? Increase in 1% in population of 12 year old will increase the demand as well as of the general cereal's product by 3.70%.
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