Problem:
lnQ=9.01-0.68lnP+0.75 lnA-1.3 lnM,
Where is the quantity of cereal ,P is the price of Cereal , A is the level of advertising and M is the income. Based on this information, determine the effect on the consumption of cereal:
i) 5 percent reduction in price of cereal (P)
ii) 4 percent increase in income (M)
iii) 20 percent reduction in cereal advertising (A)