# Calculation of Percentage Increase in Demand When Expenditures Changes

Question

Given the following demand function:
Q = 2.0 P-1.33 Y2.0 A0.66

Where:

Q = quantity demanded (thousands of units)
P = price (\$/unit)
Y = disposable income per capita (\$ thousand)
A = advertising expenditures (\$ thousand)

Determine the following when P = \$2/unit, Y = \$8 (i.e., \$8000), and A = \$25 (i.e., \$25,000)

The percentage increase in demand if advertising expenditures are increased by 5 percent

Summary

This question belongs to micro economics and discusses about percentage increase in demand if expenditure percentage increases

Total Word Count 15

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