Question: 2. Elasticity (10 points) Consider the following demand equation for good a. Good a demands is a function of income (Y) and prices of goods

2. Elasticity (10 points) Consider the following demand equation for good a. Good a demands is a function of income (Y) and prices of goods b and c. @530), were) = 100 2% + Y 3;, + 4pc. Pa = 3 Y=200 P5 :4 PC = 1 a. Calculate Q\" (2 points). b. Calculate elasticity of demand. Does it respect law of demand? is it. elastic or inelastic? \"thy? (2 points) c. Calculate elasticity of income. Is it inferior or nomal good? \"7113'? (2 points). (1. Calculate cross-price elasticities with good b. Is good b a complement. or substitute? Why? (2 points). e. Calculate cross-price elasticities with good c. Is good c a complement or substitute? 'Why? (2 points)

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