Question: Given the demand function Q = 700 - 2P + 0.02Y, where P = 25 and Y = 5000, where P is the price while

Given the demand function Q = 700 - 2P + 0.02Y, where P = 25 and Y = 5000, where P is the price while Y is income. A. Calculate the price elasticity of demand (4 marks) B. Calculate the income elasticity of demand (4 marks) C. Within the context of demand responsiveness, briefly explain the price and income elasticity coefficients calculated above. (2 marks) D. By placing Good A on the vertical axis and Good B on the horizontal axis, show graphically, the income and substitution effects for Hicks or Slutsky, where the income effect is greater than the substitution effect

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