Problem 3: The general linear demand for X estimates as: Q = 125,000 - 400P - 0.76M + 300PR where P is the price of the good X, M is the average income of the consumers who buy the good X, and PR is the price of the related good R. The expected values of P, M and PR are expected to be $ 200, $ 45,000 and $ 120, respectively. Use these values at this point to do the following calculations. 44. Calculate the quantity demanded of the good X for the given values of P, M and PR. 45. For the quantity in part a, find the price-price elasticity of demand. TO At this point in demand, is demand elastic, inelastic, or elastic unit? How would lowering the price of X affect total revenue? Explain. 46. Calculate the income elasticity of EM demand. Is the good X normal or inferior? Explain how a 3.5 percent decrease in revenue would affect the demand for X, all other factors that affect the demand for X holding constant. 47. Calculate the EXR cross price elasticity. Are substitute goods X and R or accessories? Explain how a 6 percent increase in the price of the related good R would affect the demand for X, all other factors that affect the demand for X