Please answer all questions

Please see attached screen shots for clarity

please answer all questions in BOLD

The demand for haddock has been estimated as:

log(Q)=a+blog(P)+clog(I)+dlog(P

m

)

log?Q=a+blog?P+clog?I+dlog?Pmwhere

Q

Q= quantity of haddock sold in New England

P

P= price per pound of haddock

I

I= a measure of personal income in the New England region

P

m

Pm= an index of the price of meat

Supposeb=?1.957

b=?1.957,c=0.877

c=0.877, andd=1.706

d=1.706.

What is the price elasticity of demand?

0.877

1.706

-1.957

-2.231

What is the income elasticity of demand?

1.706

0.877

0.514

-1.957

What is the cross price elasticity of demand?

0.877

1.945

1.706

-1.957

According to the estimated model, the demand for haddock isBLANKwith respect to price.

Suppose disposable income is expected to increase by 5 percent next year. Assuming all other factors remain constant, the quantity of haddock demanded next year will BLANKby BLANK percent.

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