consider the following demand function

Qx = 50 - 2Px + 4Py - 41

Suppose that price of good X is 5, price of good y is 2.5, and income is 10. Find the following;

i. Own price elasticity of demand.[2 Marks]

ii. Cross price elasticity of demand.[2 Marks]

iii. Are X and Y substitute or complements? Explain.[2 Marks]

iv. Income elasticity of demand for good X.[2 Marks]

v. Is X a normal good or inferior good? Explain.[2 Marks]

vi. Is X a luxury good or a necessity good? Explain.[2 Marks]

b. The global economy has been shaken by the outbreak of the covid-19.i. With the aid of a clearly labelled diagram(s), explain what has happened to the market for face masks.[5 Marks] ii. Suppose that the price of face masks received a once-off increase, use a clearly labelled diagram to show the decomposition of this price change into the income and substitution effect.[5 Marks] iii. Are face masks inferior goods or normal goods? Why?[3 Marks]