Income elasticity ?

Table 1: Demand schedule for computer chips Price (dollars per chip) Quantity demanded (millions of chips per Year) 200 50 250 45 Use the demand schedule for computer chips in Table 1 to answer parts (a) and (b) below. a. What happens to total revenue if the price falls from $400 to $350 a chip and from $350 to $300 a chip? b. At an average price of $300, is the demand for chips elastic, inelastic, or unit elastic? Explain your answer, using the total revenue test. Use the following Information to answer parts (c), (d) and (e). When Kritia's income was $3,000, she bought 5kgs of rice and 2kgs of beef a month. Now her income is $5,000 and she buys 4kgs of rice and 3.5kgs of beef a month. c. Calculate Kritika's income elasticity of demand for beef. Show all working steps. d. Calculate Kritika's income elasticity of demand for rice. Is rice normal good or inferior good? Show all working steps. e. The price of beef has increased by 15% whilst Kritika's income remains constant. Given your answer to part (d), how will Kritika respond to the price increase. Illustrate your answer with a demand and supply diagram of beef. (Hint! No claculation required)