Question: Consider the following demand equation for good a. Good a demands is a function of income (Y) and prices of goods b and c. 625(1))

Consider the following demand equation for good a. Good a demands

Consider the following demand equation for good a. Good a demands is a function of income (Y) and prices of goods b and c. 625(1)) Kiowa) = 100 210\" + Y 3131) + 41).:- Pa = 3 Y=200 Pb :4 PC = 1 a. Calculate Qa (2 points). b. Calculate elasticity of demand. Does it respect law of demand? is it elastic or inelastic? Why? (2 points) c. Calculate elasticity of income. Is it inferior or nomal good? Why? (2 points). d. Calculate crossprice elasticities with good b. Is good b a complement or substitute? Why? (2 points). e. Calculate crossprice elasticities with good c. Is good c a complement or substitute? Why? (2 points)

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