Question: 2) Consider the demand function: Q =1800-3P +16Y -9P. where Q is the quantity demanded, P is the price, Y is the average income of

2) Consider the demand function: Q =1800-3P +16Y -9P. where Q is the quantity demanded, P is the price, Y is the average income of a consumer and P. is the price of an alternative good. Find the price elasticity of demand, the income elasticity and the cross-price elasticity when Q = 6, Y= 16 and P. = 20. Explain what each means in economics terms. [6]

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