Please help me solve the a through d questions explain The general linear demand for good X is estimated to be Q 250,000 500P 1 5M 240P R Where P is the price of good X, M is average income of consumers who buy good X, and P R is the price related good R The values of P, M, and P R are expected to be $200, $60,000, and $100, respectively Use these values at this point on demand to make the following computations Compute the quantity of good X demanded for the given values of P, M, and P R Calculate the price elasticity of demand E At this point on the demand for X, is demand elastic, inelastic, or unitary elastic How would increasing the price of X affect total revenue Explain Calculate the income elasticity of demand E M Is good X normal or inferior Explain how a 4 percent increase in income would affect demand for X, all other factors affecting the demand for X remaining the same Calculate the cross price elasticity E XR Are the goods X and R substitutes or complements Explain how a 5 percent decrease in the price of related good R would affect demand for X, all other factors affecting the demand for X remaining the same

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Question: Please help me solve the a through d questions explain The general linear demand for good X is estimated to be Q = 250,000 500P

Please help me solve the a through d questions explain

The general linear demand for good X is estimated to be

Q = 250,000 500P 1.5M 240P_R

Where P is the price of good X, M is average income of consumers who buy good X, and P_R is the price related good R. The values of P, M, and P_R are expected to be $200, $60,000, and $100, respectively. Use these values at this point on demand to make the following computations.

Compute the quantity of good X demanded for the given values of P, M, and P_R.
Calculate the price elasticity of demand E. At this point on the demand for X, is demand elastic, inelastic, or unitary elastic? How would increasing the price of X affect total revenue? Explain.
Calculate the income elasticity of demand E_M. Is good X normal or inferior? Explain how a 4 percent increase in income would affect demand for X, all other factors affecting the demand for X remaining the same.
Calculate the cross-price elasticity E_XR. Are the goods X and R substitutes or complements? Explain how a 5 percent decrease in the price of related good R would affect demand for X, all other factors affecting the demand for X remaining the same.

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