Answer to Question #79574 in Macroeconomics for Kwasi Ameyaw

Question

A company hires an econometrician to estimate the demand function for its products (x).
The econometrician concludes that this demand function is
Qx=100Px^-3.1I^2.3Py^1.5A^0.1

Where Qx is the quantity demanded of product x per capita per month, Px is the product price ($) , I is per capita disposal income ($), Py is the price of a related product y, and A is the firm advertising expenditure ($).
i. What is the own price elasticity of demand?
ii. Will increases in price result in increases or decreases in the amount spent on the company product?
iii. What is the income elasticity of demand?
iv. What is the advertising elasticity of demand?
v. What is the cross-price elasticity of demand between good x and good y? What type of goods are x and y?
vi. If the population in the market increases by 10 percent, what is the effect on the quantity demanded if Px, I, Py and A are held constant ?