he C&C Corporation estimates that its demand function is InQ-400-31nP + 4lnM+0.6lnA, where Q is the quantity demanded per month, P is the product's price in dollars, M is per capita disposable income in thousands of dollars, and A is the firm's advertising expenditures in thousands of dollars per month. (You could round up the answer if you have to). a) If C&C Corporation receives revenues of $150,000 per month from product X and $180,000 per month from product Y. The own price elasticity of demand for product Y is -0.75, the cross-price elasticity of demand between product Y and X is -1.1, and the cross-price elasticity of demand between product X and Y is -1.3. Your Boss is concerned about declining revenues from both products X and Y; she would like to increase your firm's price of X by 10 percent or increase your firm's the price of Y by 10 percent. She would like a written recommendation with prove (calculation) on what to do from you clearly explain? (No explanation no credit).
