Question: Q = 2 0 0 2 P PA + 0 . 1 Y 2 where P = 1 0 , PA = 1 5 ,

Q =2002P PA +0.1Y2
where P =10, PA =15, and Y =100, find
a) The Price Elasticity of Demand
(4 marks)
b) The Cross-Price Elasticity of Demand
(4 marks)
c) The Income Elasticity of Demand
(4 marks)
d) Estimate the percentage change in demand if PA rises by 3%.
Is the alternative good substitutable or complementary?

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