General creal is using a regression model to estimate the demand for Tweetie Swe

Question

General creal is using a regression model to estimate the demand for Tweetie Sweeties, a whistle-shape, sugar-coated breakfast cereal for children The following(multiplicative exponential) demand function is being used. Qp=6,280P-2.15A 1.05N3.70. WhereQp=quantity demanded in 10 oz boxes P= price per box in dollars. A=advertising expenditure on daytime television in dollars . N= proportion of the population under 12 years old a) Determine the point price elasticity of demand for the Tweetie Sweeties. b)Determine the advertising elasticity of demand. c) what interpretation would you give to the exponent of N?

Explanation / Answer

a) price elasticity of demand for the Tweetie Sweeties = 6280 b) advertising elasticity of demand = -2.15 c) there is something missing in the given equation i.e before 1.05N3.70 with the complete equation i can tell something about N

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