Etermine the effect on the consumption of cereal


Question about Analyzing the given demand function

lnQ=9.01-0.68lnP+0.75 lnA-1.3 lnM,

Where is the quantity of cereal ,P is the price of Cereal , A is the level of advertising and M is the income . Based on this information, determine the effect on the consumption of cereal :

i) 5 percent reduction in price of cereal (P)

ii) 4 percent increase in income (M)

iii) 20 percent reduction in cereal advertising (A)

 

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Business Economics: Etermine the effect on the consumption of cereal
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