Question: Please see attached image 5. (30 points) Below is an elasticity matrix (own-price, cross-price and income) for three goods. Recover missing elasticities using formulas provided
Please see attached image

5. (30 points) Below is an elasticity matrix (own-price, cross-price and income) for three goods. Recover missing elasticities using formulas provided (see the additional paper attached to the email). Formulas provided are, Marshallian cross-price effects in elasticity form, Homogeneity row restriction and adding-up column restriction. Show all work. Product 1 Product 2 Product 3 Income Product 1 E11 = (-2) E12 = (? ) E13 = (0) m = (1/ 4) Product 2 E21 = (?) E22 = (?) E23 = (? ) n2 = (? ) Product 3 E31 = (?) E32 = (-1/8) E33 = (? ) n3 = (1/ 2 ) Budget shares W1 = (1/4) W2 = (1/2 ) W3 = (1 / 4 )
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