Question: 4. (25 pt.) Assume that the function for the demand for flour is given by: Qd = f(Y, Pc, Ps) = 0.05Y + 10Pc -

4. (25 pt.) Assume that the function for the demand for

4. (25 pt.) Assume that the function for the demand for flour is given by: Qd = f(Y, Pc, Ps) = 0.05Y + 10Pc - 5P? Wheremban is the demand for flour. Y is income, Pp is the price of flour and Pc is the price of coconut flour. a) Apply total differential to find the approximate change in the demand of flour with a 1% increase in income, initially, Y=10,000, PF. = 5 and Pc = 7. b) Apply total differential to find the approximate change in the demand of flour with an increase in income of $1 initially, Y=10,000, PF = 5 and Pc = 7. c) Apply total differential to find the approximate change in the demand of flour with a 1% increase in the price of flour, initially, Y=10,000, PF = 5 and Pc = 7. d) Apply total differential to find the approximate change in the demand of flour with a $1 increase in price of flour, initially, Y=10,000, PE 5 and Pc = 7

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