Question: Initial values are: PM = 320000 P3 = $1.00 I = $15000 A = $10000 This function is: QT = 200 .01PT +.005P11 10P[; +.0.lI

Initial values are: PM = 320000 P3 = $1.00 I = $15000 A = $10000 This function is: QT = 200 .01PT +.005P11 10P[; +.0.lI +.003A 1(a). Calculate the point gasoline crossrpriee elasticity between {PG} and Toyota demand {QT}. Assume the price of gasoline is E: = $1.00. L'se Pr = 20000 {which should make QT = 270'}. lEither variables and their values are given at the top: before question #1. The formula is: 30? _P_o 3Pa QT ETG _ {b}. Does this elasticity indicate that the demand for Toyotas is relatively responsive to changes in the price of gasoline {Pg}? Explain why or why not

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