Question: Need help with part A B and C Econ 302: Problem Set 1 3. Let the market demand for rye bread be given by Q,

Need help with part A B and C

Need help with part A B and C Econ 302: Problem Set

Econ 302: Problem Set 1 3. Let the market demand for rye bread be given by Q, = 500 + 1- 250Pry + 400Pwheat, where Q is monthly demand in number of rye loaves, I is average monthly income in dollars, Pre is the price of a loaf of rye bread, and Pwheat is the price of a loaf of wheat bread. If I = $1,000, Pre = $2, and Pwheat = $3, calculate the following: a. Price elasticity of demand for rye bread if the price of rye bread increases by 1%. b. Cross-price elasticity of demand for rye bread, if the price of wheat bread increases to $3.30. Are rye bread and wheat bread complementary goods or substitute goods? C. Income elasticity of demand for rye bread, if incomes increase to $1,100. Is rye bread a normal or inferior good

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