Question: Consider the demand function for the demand for textbooks: = 150.75 2.5+ 0.25 +0.1, where income is 1,200, p is the price of textbooks and

Consider the demand function for the demand for textbooks: = 150.75 2.5+ 0.25 +0.1, where income is 1,200, p is the price of textbooks and is the price of electronic textbooks. a. If the price of textbooks is $100, the price of electronic texts is $65, and income is $5,000, what is the quantity demanded? b. Calculate the price elasticity of demand for textbooks. Would you consider the demand for textbooks to be inelastic or elastic? Does this make sense? c. If textbook companies were to raise the price of textbooks, would revenue rise or fall? Why?

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