Question: 6. The demand function for bicycles in the southeast portion of the US has been estimated to be Q = 2,000 +15Y - 5.5P where

6. The demand function for bicycles in the southeast portion of the US has been estimated to be

Q = 2,000 +15Y - 5.5P

where Y is income in thousands of dollars, Q is the quantity demanded in units and P is the price per unit. When P = 150 dollars and Y = 15(000) dollars, determine the following:

a. price elasticity of demand

b. income elasticity of demand

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