04 Question (3 points) See page 280 Belle has quasilinear preferences over health care and all...

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04 Question (3 points) See page 280 Belle has quasilinear preferences over health care and all other goods as represented by the function u(x, y) = 9y, where x is health care and y is a composite representing all other goods. The price of ty is normalized to 1. > 2nd attempt 1st attempt Part 1 (2 points) Feedback Suppose the price of health care is $100. What is Belle's price elasticity of demand for health care? 19.95 If the price increases to $150, what will Belle's price elasticity of demand for health care be? 11.41 Part 2 (1 point) Feedback Suppose Belle has an income of $2000 per month. What is her income elasticity of demand? .506 See Hint See Hint 04 Question (3 points) See page 280 Belle has quasilinear preferences over health care and all other goods as represented by the function u(x, y) = 9y, where x is health care and y is a composite representing all other goods. The price of ty is normalized to 1. > 2nd attempt 1st attempt Part 1 (2 points) Feedback Suppose the price of health care is $100. What is Belle's price elasticity of demand for health care? 19.95 If the price increases to $150, what will Belle's price elasticity of demand for health care be? 11.41 Part 2 (1 point) Feedback Suppose Belle has an income of $2000 per month. What is her income elasticity of demand? .506 See Hint See Hint