Answer Happy

General Cereals is using a regression model to estimate the
demand for Tweetie Sweeties, a whistle-shaped, sugar-coated
breakfast cereal for children. The following (multiplicative
exponential) demand function is being used:
QD=6,280 P(−2.15)A2.05N2.20QD=6,280 P−2.15A2.05N2.20
where
QDQD = quantity demanded, in 10-oz boxes
PP = price per box, in dollars
AA = advertising expenditures on daytime television, in
dollars
NN = proportion of the population under 12 years old, in
percent
What is the point price elasticity of demand for Tweetie
Sweeties?
-1.05
-2.15
2.05
2.20
What is the advertising elasticity of demand?
-2.15
2.20
2.05
0.93
According to the estimated model, a percent increase in the
proportion of the population under 12 years old
the quantity demanded by percent.