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The demand for Wanderlust Travel Services is estimated to be: Qdx = 22,000 – 2.5Px +...

The demand for Wanderlust Travel Services is estimated to be: Qdx = 22,000 – 2.5Px + 4Py – 1M – 1.5Ax Ax represents the amount of advertising spent on X and M represents consumer income. The other variables have their usual interpretations. Suppose the price of good X is $450, Good Y sells for $40, the company utilizes 3,000 units of advertising and consumer income is $20,000. At the adjusted price of Y at $50, is demand elastic or inelastic. Explain your response in relation to Quantity Demand and Revenue impact to the firm.

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