2. [12 points] After a careful statistical analysis, the Stardust Company concludes the demand function for its product is {in 2 son 4P + 1.515,. + 0.5! where (1 is the quantity demanded of its product, P is the price of its product, P, is the price of its riyal's product, and l' is per capita disposable income [in dollars]. At present, P = $20, Pr = fill}, and I = l,l] I]. [2 points + 1 point 42- 3 points} What is the price elasticity of demand for the rm's product at the current price? Interpret your result. Should you be a consultant for the company would you suggest raising prices to increase revenue? (Hint: Use relationship between price elasticity of demand and reyenue] {2 points + 1 point] What is the in name elasticity of demand for the mfs product? Depending on your result state the nature of the product. {2 points + 1 point} What is the cross price elasticity ofdemand between its product and its riyal's product? State the relation between the products depending on your result. [13 points} A rm produces according to the following production function: Q = EKELZ .1K3t.3. Assume that capital is fixed at 5 units. a. [1 points + 2 points + 2 points] Determine the total product, marginal product and average product of labor? b. [3 points] Determine the number of labors for which average product is maximum