An analyst for a major apparel company estimates that the demand for its raincoats is given byln Q d x 10 1.2 ln P x 3 ln R 2 ln A ywhere R denotes the daily amount of rainfall and A y represents the level of advertising ongood Y. What would be the impact on demand of a 10 percent increase in the daily amount95Quantitative Demand Analysisof rainfall? What would be the impact of a 10 percent reduction in the amount of advertisingdirected toward good Y? Can you think of a good that might be good Y in this example?

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